Time to plan

In his second article on the VAT domestic reverse charge for construction, David Westgate examines the areas which will require further clarification and issues impacting developers

A new VAT domestic reverse charge (DRC) will be introduced on 1 October 2020 for building and construction services. (This was originally 1 October 2019; see Revenue and Customs Brief (10), dated 6 September 2019.) The final version of the draft Value Added Tax (Section 55A) (Specified Services and Excepted Supplies) Order 2019 was issued on 7 November 2018 together with related guidance.

The first part of this article, published in the September issue of Tax Adviser, considered the application of the DRC and its interaction with the construction industry scheme (CIS).