1.2 million construction workers to see VAT changes from today. (Canva) A new VAT charge will come into effect for 1.2 million construction workers today which could see disruption in trader/supplier relationships and potential cash flow issues, it has been claimed. HMRC’s new VAT domestic reverse charge for building and construction services comes into effect from 1st March 2021. The reverse charge will apply to all CIS registered businesses buying and selling construction services that are subject to CIS reporting, apart from those that are zero-rated, up to the point in the supply chain where the customer is the end-user. At this point, the normal reporting and collection of VAT resumes.