Standard rate VAT - Revert date

Standard rate VAT - Revert date

April 18th 2009 6:55 pm

general

The standard rate of VAT was reduced from 17.5% to 15% for the 13 month period 1 December 2008 to 31 December 2009. HMRC ha ...

496 views

The standard rate of VAT was reduced from 17.5% to 15% for the 13 month period 1 December 2008 to 31 December 2009. HMRC have confirmed that the standard rate of VAT will revert to 17.5% from 1 January 2010. The government have confirmed that legislation will be introduced to counter schemes which purport to apply the 15% VAT rate to goods or services to be supplied on or after the date that the rate returns to 17.5%. The measures will apply where the customer cannot recover all the VAT on the supply and:
  • the supplier and customer are connected parties or
  • the supplier funds the purchase of the goods or services or
  • a VAT invoice is issued by the supplier where payment is not due for at least six months.
A supplementary charge will also apply where a pre-payment in excess of £100,000 is made before the rate rise in respect of goods or services to be provided on or after the date of the rate rise. The effect of the measures will be to charge supplementary VAT of 2.5%, where VAT of 15% has been declared. Source: HMRC budget note 71 HMRC budget note 72

be smart. find an accountant online now. it's easy!

what type of accounting work do you need help with? choose below.

Disclaimer

We are a lead generation facility for accountants located across the UK. We provide our visitors with the ability to search for accountants directly or provide details of the work they require and seek out accountants looking for clients with similar circumstances. Users of this website are assured that their personal details are not distributed to more than one accountant and that accountant is then allowed to contact the user to discuss the service the accountant can provide. All data transmission on this website and administration facility is carried out under full 256-bit SSL encryption.

Data Protection Registration Number ZA200013

Please read our full disclaimer.