From October 2019, proposed changes to VAT and the CIS are being planned within the construction industry. The Construction Industry covers a vast and wide-ranging sector of business in the UK and often includes a supply chain of providers, contractors and sub-contractors
The government have announced that the proposal of a domestic reverse charge has been agreed and this will be introduced with effect from 1st October 2019 and will generally cover all invoices that fall within the CIS.
The idea is that it will simplify the charging and recording of VAT and reduce the fraud possibilities that may arise through unscrupulous traders operating VAT illegally.
The domestic reverse charge means that in the entire supply chain, VAT is only actually paid by the end customer. All other invoices are issued within the reverse charge system and no VAT changes hands.
If you would like to read more about the consolation you can do this here.
Here at TI Accountancy we will try our best to help you with any questions you may have regarding these changes.