CIS VAT Reverse Charge – Changes From 1st March 2021
Understanding Your Business
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Changes are scheduled to be introduced from 1st March 2021 which will affect VAT registered businesses operating in the Construction Industry.
These changes have already been twice postponed (with mounting pressure from the Construction Industry for a further postponement) and have a big impact on how VAT is accounted for in the Construction Industry.
The CIS VAT Reverse Charge means that the end user/customer pays the VAT to HMRC instead of the supplier of the construction services.
We have created a handy flowchart to help see how this will affect your business together with some extra notes and a working example.
If you feel that your business may be affected by the changes, please get in touch.
