HMRC’s new domestic reverse charge for construction services come into force on 1 October 2019. HMRC has recently finalised its legislation and published further guidance on this new regime, which will require the recipient rather than the supplier to account for the VAT due on certain construction services. The domestic reverse charge will be introduced without a transitional period and will have a significant impact on the accounting practices and cash flow of businesses in the construction sector.
Source: BDO
