Domestic Reverse Charge Webinar

The Domestic Reverse Charge (DRC) is being introduced from 1 March 2021. The new reverse charge is the latest initiative to combat missing trader or carousel fraud that first appeared in relation to precious metals, computer chips and mobile phones. Due to both the Covid pandemic and preparations relating to Brexit, the introduction has been delayed twice but it appears that it will not be delayed a third time.

The DRC will affect businesses that:

  • Buy or sell services that are ‘specified services’ that are reported within the Construction Industry Scheme (CIS)
  • The supplier and the recipient are both registered for VAT in the UK
  • The supply is standard rated or reduced rated.
  • The supply is not to the end user or an intermediary

Jonathan Main, Head of Indirect Tax and VAT at MHA Moore and Smalley explains how the new system will be operated and what those in the construction sector need to do to comply.