9 September 2019
Success as Reverse VAT is delayed
The implementation of Reverse VAT has been delayed by 12 months following successful lobbying from a coalition of industry organisations including Build UK.
Reverse VAT, which makes payment of the tax the responsibility of the customer rather than the supplier, will now come into effect on 1 October 2020 – a year after it was initially planned (1 October 2019).
The industry demonstrated the power of collaboration, with FMB fronting the campaign and Build UK working behind the scenes to successfully affect change. In a letter to HMRC in August the coalition made the case that the impact of the changes were not fully understood within the industry in addition to the ongoing uncertainty caused by Brexit.
HMRC acknowledged that the extended implementation was down to industry efforts to highlight concerns that the sector would not be ready for the changes in October.