The implementation of domestic reverse charge VAT for construction services will be delayed for a 12-month period until 1st October 2020. Any businesses who are VAT registered in the construction sector will be affected by this.

Concerns from businesses within the construction sector were raised regarding not being ready to implement the changes starting from 1st October 2019 and in a result of this, the dates have been changed. This will also avoid changes that coincide with Brexit.

Within the extended year, HMRC will focus on working closely with the construction sector to raise awareness and provide advice, guidance and support to businesses to get ready for the new implementation date.

HMRC understand that some businesses may have already changed their invoices to meet the new reverse charge rules and cannot change back in time. Meaning where any errors that occur, HMRC will take into the account that the dates have been changed.

Any businesses who have opted for monthly VAT returns before 1 October 2019 date they can be reversed by going on the HMRC website and using the stagger option.

Click here to find out more.