Change in VAT rate
November 28th, 2008
On Monday November 24 The Chancellor announced a fall in the standard rate of VAT to 15% with effect from 1st December and to last until 31 December 2009.
A full set of Q&A can be found on www.hmrc.gov.uk under the ‘VAT’ section but key points to note are:
- the rate of VAT to charge depends on the date of supply of the goods /services not the date of the invoice unless the invoice is issued within 14 days of the goods changing hands in which case the invoice date applies.
- If using accounting software you will need to change the VAT rate used by the system; usually this is something that can be done in the company preferences. If using an online ordering & invoicing system you will need to ensure that invoices raised on customers carry VAT at the new correct rate.
The content of this article is for general information only. It should not be relied on and action which could affect your business or personal circumstances should not be taken without appropriate professional advice.
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