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HMRC have issued a business brief announcing a postponement to the implementation of the new domestic reverse charge which was due to take effect from 1 October. It has been delayed by a year and will now start 1 October 2020.

This means businesses have a further 12 months to prepare for the implementation.

HMRC's announcement explains the reasoning behind the delay: “Industry representatives have raised concerns that some businesses in the construction sector are not ready to implement the VAT domestic reverse charge for building and construction on 1 October 2019.

“To help these businesses and give them more time to prepare, the introduction of the reverse charge has been delayed for a period of 12 months until 1 October 2020. This will also avoid the changes coinciding with Brexit.”

Our full guide to domestic reverse charge (DRC) can be found here.

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