Domestic Reverse Charge for supplies of building and construction services
SummaryEffective 01 March 2021
In March 2021 Domestic Reverse Charge (DRC) is introduced for the UK Construction Industry. It is a process for handling VAT.
What have customers done to tackle this? I'd like to start a discussion on implementation advice, challenges and pearls of wisom that people are willing to share. Our approach;
- Setup of separate Tax Rates which are linked to Offset Taxes
- Eligble suppliers flagged with Registration Status, and Default Tax Classification Code. Tick the 'Allow Offset Taxes' checkbox
- Eligible customer contracts flagged with the correct Default Tax Classification Code depending on end user/intemediary user confirmation