Reverse VAT - 1st March 21 goes live.

[donnk]

From 1st march no subbies, sole trader, ltd co's etc will be able to charge VAT on any construction work to the main contractor.

 

Domestic reverse VAT charge for building and construction services - GOV.UK

WWW.GOV.UK

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Find out about the VAT domestic reverse charge for building and construction services that starts on 1 March 2021.

 

 

 

This means all vat registered business contracting to a main contracter via CIS will have to reclaim any vat incurred on materials via their normal vat return instead of deducting it from vat received.

 

This could actually be better for most subbies if they switch to monthly VAT they can reclaim the VAT before having paid the bill themself.

[s o c]

We’ve had reverse vat in Ireland for a good few years.

its a good system for tree work or works where you’re not supplying materials.

I find you don’t have a ‘false’ bank balance followed by a big vat bill.