Why VAT changes could not come at a worse time

摘要

VAT is not a headline-grabber, but it has climbed up the agenda as changes set to hit the industry on 1 October look more and more like a disaster waiting to unfold. In a nutshell, the new reverse charge VAT system will see many SMEs no longer receiving VAT payments for their services. The new regime poses two problems to construction firms: the practical challenge of switching to the new system; and the extra complications that the current economic environment adds.