Reverse Charge VAT delayed until October 2020
We have previously made you aware of the new Reverse Charge VAT legislation that will affect the building and construction industry. The changes will affect services provided at the standard or reduced rates of VAT that also need to be reported under CIS.
The Government had planned to impliment this new legislative change in October 2019, but concerns had been raised that businesses in the UK would not be ready to undertake the changes by October 2019. The HMRC has made the decision to delay Reverse Charge VAT by 12 months, meaning businesses now have until October 2020 to prepare. The new date also avoids the changes coinciding with Brexit.
HMRC has posted a brief on their website (read here) that explains what businesses need to do if they have already made the changes. It also outlines what they plan to do in the intervening year to assist with Reverse Charge VAT.
- The Profile Team