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VAT domestic reverse charge for construction services: where are we now?

The DRC is delayed but not abandoned. Richard Dalton (BDO) examines where things stand and what steps should be taken before its implementation.

The domestic reverse charge for building and construction services (DRC) was originally scheduled to come into force on 1 October 2019. However following concerns around HMRC’s promotion of the changes and industry’s preparation this has been postponed to 1 October 2020. Crucially however there is no suggestion that the DRC will be abandoned. It is therefore essential that taxpayers take all necessary steps to ensure that they understand its implications and are ready for its implementation on 1 October 2020.

The key feature of the change is that it will require the recipient rather than the supplier to account for the VAT due on certain types of services.

The legislation...

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