The domestic reverse charge for building and construction services (DRC) comes into force on 1 October 2020. It represents a fundamental change to the way in which VAT will be accounted for in the construction sector and is likely to have a major impact on cashflow and working capital in the sector. The DRC will be introduced without a transitional period, and HMRC has therefore delayed its implementation for a year from the intended implementation date of 1 October 2019 to ensure that taxpayers are aware of the change and have developed plans to manage its potential impact.
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The domestic reverse charge for building and construction services (DRC) comes into force on 1 October 2020. It represents a fundamental change to the way in which VAT will be accounted for in the construction sector and is likely to have a major impact on cashflow and working capital in the sector. The DRC will be introduced without a transitional period, and HMRC has therefore delayed its implementation for a year from the intended implementation date of 1 October 2019 to ensure that taxpayers are aware of the change and have developed plans to manage its potential impact.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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