Released 20 July 2021
HM Treasury (HMT) has published a summary of responses to the consultation on potential reform to the way public bodies manage their VAT affairs.
In summary, HMT says that a Full Refund model (FRM) remains the Government’s preferred option. However, the Government recognises the complexity of changing the VAT framework for the public sector and is keen to continue working closely with stakeholders on the next stage of policy development and consideration of the areas highlighted in the responses, before making a final decision on whether to implement FRM.
Further details can be found at https://www.gov.uk/government/publications/vat-and-the-public-sector-reform-to-vat-refund-rules.