- VAT Domestic Reverse Charge (DRC) for building and construction services introduced on 1 March 2021
- Applies to supplies made at standard and reduced rate of VAT reported through Construction Industry Scheme (CIS)
- Applies to most supplies between sub-contractors and contractors, excludes end users and intermediaries connected with end users
- Mechanism removes obligation for seller to charge VAT, customer self-accounts for VAT due
- Practical example provided to illustrate how DRC works in practice
- New rules have led to difficulties for suppliers in identifying applicable supplies and implementing the reverse charge accounting method
Source: haysmacintyre.com
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.
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