VAT Reverse Charge Delayed

PhilHallAAT

On Friday 6 September 2019 the Government confirmed that the introduction of the domestic VAT reverse charge for construction services will be delayed for a period of 12 months until 1 October 2020.

The VAT reverse charge makes the payment of VAT the responsibility of the customer rather than the supplier, which is an enormous change to the system.

Given the magnitude of the change, the short notice and the general lack of awareness as to what this means in practice, AAT backed the National Federation of Builders and Federation of Master Builders in calling for a delay to its implementation. AAT is therefore very pleased that the Government has taken on board these concerns and agreed to a one-year delay.

Full details about this delay are available from HMRC here.