VAT: Domestic Reverse Charge now live in Xero

▤ Summary

DRC intends to cut down on “missing trader” fraud, where companies receiving high net amounts of VAT from their customers have no intention of ever paying over to HMRC. The Domestic Reverse Charge for building and construction services was due to come into effect on 1 October 2019 however industry representatives raised concerns about the readiness of some businesses. Xero’s new feature helps you comply with the Domestic Reverse Charge, whilst reducing errors and saving precious time. It’s easy to add the Domestic Reverse Charge tax rates in Xero – just follow the simple steps below and you’re all set. Customers receiving a specified service account for the VAT on sales, by selecting a DRC tax rate on the invoice.

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