Domestic Reverse Charge for Construction Services: A Guide for Businesses

The Domestic Reverse Charge (DRC) for construction services shifts VAT responsibility from the supplier to the customer.
The DRC applies to most supplies of building and construction services made to VAT-registered businesses in the UK.
The DRC does not apply to supplies to non-VAT registered customers, zero-rated services, or supplies to end-users who do not make onward supplies of the construction services.
The DRC impacts cash flow for subcontractors as they will no longer receive VAT on their invoices.
Businesses need to update their accounting systems and invoices to reflect the DRC.
Businesses need to ensure compliance and provide training to employees on the DRC.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.