New VAT Rules for Construction Sector
New VAT rules come into effect on 1st March 2021 that will have an effect on accounting for VAT on transactions in the construction sector. Originally scheduled for October 2019, they have been delayed until this March due yo the lack of industry awareness.
The new ‘reverse charge’ system of VAT accounting will affect sub-contractors supplying their services to main contractors in the construction sector. Under the new rules, the sub-contractor will not show VAT on their invoice to their client and will not account for output VAT. This change will apply to a wide range of services in the building trade, primarily those services covered by the construction industry (CIS) payment rules.
If you are unsure on whether the new VAT rules apply to your business, or how they should be implemented, please do not hesitate to contact us on 01384 376964
Call 01384 376964
Folkes Worton – Accounting for the Future