Prepare your business for the change in VAT rate
By: Women in Business | 14/12/2009 11:13:27

Prepare your business for the change in the VAT rate from 15 per cent to 17.5 per cent ahead of the 1 January 2010 deadline.

The standard rate of VAT was temporarily reduced to 15 per cent on 1 December 2008 and it will return to 17.5 per cent on 1 January 2010. For any sales of standard-rated goods or services that you make on or after 1 January 2010, you must charge VAT at the rate of 17.5 per cent.

The change only applies to the standard VAT rate. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly there are no changes to the VAT exemptions. Any sales you make at these rates are unaffected by this change.

Practical help and guidance
Our guidance will help you prepare for this change in the VAT rate by giving you practical advice on:

retail businesses
issuing VAT invoices
sales that span the change rate
services you start before 1 January 2010 but finish after this date
completing your VAT return
claiming VAT
Businesses operating beyond midnight on New Year's Eve
Businesses operating beyond midnight on 31 December 2009 have been granted a 'period of grace' whereby they can continue to charge VAT at 15 per cent until 06.00 on 1 January 2010 or closing time, whichever is earliest. Businesses granted this 'period of grace' include retail businesses, pubs and clubs, restaurants and telecommunications providers.

Go to www.nibusinessinfo.co.uk

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