As you may be aware, HMRC have announced that the implementation of the domestic reverse charge VAT for construction services is to be delayed by a year, and the legislation is now expected to be enforced on 1st October 2020. The reason for this delay is to give businesses more time to prepare for the UK’s potential exit from the European union. Please read the HMRC web page for further details.
Because Pegasus wanted to release both Pegasus CIS and Opera 3 / II software that is compatible with the legislation in good time, it has already released software version CIS (4.10.00), Opera 3 (2.61.02) and Opera II (7.81.02).
Both CIS and Opera back office upgraded
If you have been upgraded to the CIS (4.10.00) release and the Opera back office has also been upgraded, then it’s important that processing continues using the site’s existing VAT codes in the same way as before the legislation was due to come into effect. There is no need to create the reverse charge VAT codes until the legislation becomes effective in 2020. If codes have already been created, then Pegasus advises that the effective date of the code is set to 01/10/2020 and reimported into CIS. This will make them unavailable in CIS, until October 2020.
CIS upgraded only
If you have been upgraded to the CIS (4.10.00) release to take advantage of the maintenance fixes but the Opera back office has not been upgraded, then processing can continue as before the legislation was due to come into effect.
Opera 3/II upgraded only
If you remain on a version of CIS prior to 4.10.00 but the Opera back office has been upgraded, then processing can continue as before the legislation was due to come into effect. The upgrade of CIS can be scheduled in at a convenient time.
In summary, Pegasus does not expect to release any new versions of its products for domestic reverse charge VAT for construction services compliance.