Changes are being made to the way VAT is handled for some kinds of building and construction services and materials. The new VAT domestic reverse charge for building and construction services was due to come into effect on 1st October but has been postponed for 12 months. It applies to certain transactions between VAT registered contractors and sub-contractors who are part of the Construction Industry Scheme (CIS).
Under the new rules, those supplying qualifying services and materials will no longer have to handle the VAT. Instead, the customer will account for the VAT.
The reverse charge represents a significant change to the way VAT is collected in the construction industry.
HMRC is running a series of live webinars for those affected by the new VAT reverse charge for construction industry services. It will help you understand if the changes affect you, how they might impact cashflow and what you can do to prepare. You can sing up for the next webinar here: https://register.gotowebinar.com/rt/2490703200169451010?source=Gov