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Sage 200 - Construction Industry Scheme Legislation Changes for VAT

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This communication was issued 09 August 2019

Note: Since this article was created the government have delayed the date to which this legislation comes into action from October 2019 to October 2020, more information can be found here.

VAT: domestic reverse charge for building and construction services

Notice 19-AO | 09 August 19


The way in which VAT is charged on construction services will change from 01 October 2019, as a result of new anti-fraud rules.

This will impact domestic supplies (UK Only) where payments are reported under the 'Construction Industry Scheme', more specifically supplies of services that are Standard Rate (20%) or Reduced Rate (5%).

Sage 200 Summer 2019 Enhancements release, available later this month, will allow customers in conjunction with third-party software to have a fuller compliance experience.

We recognise that not all customers will be in a position to upgrade, for a variety of scenarios we've prepared workarounds to enable your third-party software to maintain compliance, you can find out more here.