The VAT Domestic Reverse Charge (“DRC”)

November 5, 2019



The VAT Domestic Reverse Charge (“DRC”) on construction services for Local Authorities,
their companies, joint ventures, and social enterprises.

On 1 October 2020, there will be a major change in the way local authorities, the NHS, and their associated companies must deal with VAT on construction services.  Officers will need a knowledge of both VAT and the Construction Industry Scheme (“CIS”) to ensure their organisations are compliant.  To be compliant, among other things, Officers will need knowledge about the supplier’s business status, the VAT rate of the supply, the CIS status of the supplier and the services, and how the reverse charge should be applied.

Although the new regime is an anti-avoidance measure targeting the private sector, it will have a major effect on local authorities, the NHS, and their associated companies. They will have to carry out the reverse charge or notify suppliers that it does not apply. There is no “do-nothing” option and getting it wrong could give rise to penalties.

PSTAX has so far previously hosted nearly a dozen Seminars on the new DRC and at every one delegates have introduced new examples of where the DRC will apply.  There have been helpful discussions about what practical steps local authorities can take to minimise the tax-compliance requirements, the disruption, and the resource-demands the DRC will create. In addition to the PSTAX specialist knowledge of the DRC, this new Seminar will draw on the knowledge-sharing from the previous Seminars to provide the latest thoughts on the relevant practices local authority Officers might adopt.

The seminar will be hosted by CRS VAT and PSTAX. CRS VAT is a leading provider of high quality VAT services to the NHS, and PSTAX is the leading taxation advisor to local authorities with a unique “all-taxes” advisory service.

CRS VAT and PSTAX are ideally placed to give delegates a comprehensive understanding of how the new legislation will affect the construction activities of local authorities, the NHS, and their companies.

Seminar programme

09.00 – 09.35    Registration (with refreshments)
09.30 – 09.35    Introduction
09.35– 10.15     VAT reverse charge – background
10.15 – 11.00    Construction Industry Scheme (“CIS”) – background
11.00 – 11.15    Refreshments
11.15 – 13.00    Reverse charge on construction services – consequence for local authorities, their companies, JVs and social enterprises:

  • Examples and case studies
  • How to ensure compliance

13.00 – 14.00   Lunch and informal one-to-ones with CRS VAT and PSTAX consultants

Dates and venues of when the Seminars will recommence will be advertised here and via our e-alerts in the New Year.
To book a place please contact quoting your purchase order number.  The cost for each delegate is £200 plus VAT (with a 10% discount offered for three or more places).