{"id":33939,"date":"2021-02-25T09:29:27","date_gmt":"2021-02-25T09:29:27","guid":{"rendered":"https:\/\/www.okappy.com\/?p=33939"},"modified":"2021-03-11T09:07:58","modified_gmt":"2021-03-11T09:07:58","slug":"5-things-you-should-know-about-the-reverse-vat-charge","status":"publish","type":"post","link":"https:\/\/www.okappy.com\/5-things-you-should-know-about-the-reverse-vat-charge\/","title":{"rendered":"5 Things You Should Know About the VAT Reverse Charge"},"content":{"rendered":"

From 1st March 2021, if you supply goods and services to the construction sector, then you will need to implement VAT reverse charging on your invoices<\/p>\n

Find out everything you need to know about the domestic reverse charge for supplies of building and construction services.<\/p>\n

What is VAT reverse charge?<\/h2>\n

Reverse charge is the amount of VAT you would have paid on a service if bought in the UK. You have to add that amount to the total of VAT you are going to pay to HMRC that quarter, but also to the amount of VAT you are going to reclaim in that quarter.<\/p>\n

Domestic VAT reverse charge legislation (DRC) is a change in the way Construction Industry Scheme (CIS) registered construction businesses handle and pay VAT. It is being introduced in the UK on 1 March 2021, having previously been delayed from October 2019.<\/p>\n

Who will it affect?<\/h2>\n

It affects VAT registered construction businesses who supply or receive construction and building services that are reported under the CIS. It means the customer (contractor) will be responsible for the VAT due to HMRC instead of the supplier (subcontractor). That means that it is likely to affect your business in some shape or form.<\/p>\n

Preparation checklist<\/h2>\n