Domestic Reverse Charge
Preparing for the Domestic Reverse Charge
A VAT 'reverse charge', is to be introduced in the UK for building and construction services, and is designed to combat VAT fraud in the building and construction sector. It will have significant impact on VAT compliance and cashflow.
A customer within the construction industry receiving the supply of construction services will have to pay the VAT direct to HM Revenue & Customs (HMRC) rather than paying it to the supplier. Supplies made to 'end users', supplies between connected parties and supplies between landlords and tenants will be excluded from the new rules if the customer notifies the supplier that the exemption applies.
Pearce Ross have developed a new process in SunSystems and iPOS to identify transactions affected by the Domestic Reverse Charge
and automatically post all necessary entries into your SunSystems ledgers. Also works for journals posted directly into SunSystems or through Q&A XL.
Contact us for more information