VAT News

Further HMRC delay to the implementation of the VAT Domestic Reverse Charge for construction services


Of interest to anyone in the Construction industry or who receives building services will be the news today that HMRC has confirmed that the introduction of the new Domestic Reverse Charge for construction services (DRC) will be further delayed from 1 October 2020 to 1 March 2021.      

Originally, the DRC was to begin on 1 October last year but was changed to 1 October 2020 as HMRC acknowledged the adverse cash-flow implications that will affect many construction businesses as a result of DRC and the time they needed to plan for the change.  This new delay to 1 March 2021 recognises the impact of Covid-19 on the Construction sector.

Another point to note is that the announcement today also includes a compliance change to the DRC legislation which requires that end-users or intermediary suppliers must provide written confirmation of this status to suppliers so that the DRC is not applied to their services and is instead invoiced under normal VAT rules.

For some businesses this will be a complicated area of VAT. If you would like our assistance or advice on the DRC as it may affect your business, please do get in touch with your usual Centurion VAT contact or by email at

For the avoidance of doubt, the content recorded in this news article does not constitute formal advice and we do not guarantee the accuracy of any information provided at the time of reading. It is always recommended that you seek professional advice before acting on any of the news articles or information included.   


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