Understanding the Impact of the VAT Reverse Charge on Construction Businesses
This online course provides an overview of the upcoming changes to the Value Added Tax (VAT) reverse charge for building and construction services. With the implementation of the reverse charge set to take effect from 1 March 2021, it is crucial for construction businesses to prepare for the impact on their accounting systems and cash flows.
By the end of this course, you should be able to:
- Understand the potential negative impact of the VAT reverse charge on the cash flows of affected businesses
- Learn about the HMRC guidance on the VAT reverse charge, including the need for end users or intermediary suppliers to notify their sub-contractors in writing in order to be excluded from the VRC
- Understand the penalties that may be incurred for not accounting for VAT correctly during the first six months of the VRC implementation, and the criteria for such penalties