Following the implementation of the new VAT reverse charge for building and construction services from 1 March 2021, those providing services to the UK construction industry (whose customers are registered under the Construction Industry Scheme) will have to manage and pay VAT in a different way.
This will only be for transactions between VAT-registered contractors and subcontractors that are reported under the Construction Industry Scheme and are subject to the VAT reverse charge for construction. According to HMRC's website "If the customer is registered for UK VAT and the supply is within CIS then the domestic reverse charge will apply." More information can be found here
As a result, if you're likely to receive orders through prof.ITplus from a customer who is UK VAT registered and is enrolled in the Construction Industry Scheme, or provide such services via your website, please get in touch to allow us to discuss the associated development, prof.ITplus release timescales and costs.
HMRC has highlighted some leniency with the implementation of the reverse charge which is published within the VAT reverse charge technical guide under section 5.0 which can be found here.
