VAT Rate Change

The Chancellor has changed the rate of VAT from 15% to 17.5% effective 1st January 2010.

VAT is charged on the date the goods/services were carried out or on the date of invoice (whichever is the earlier).

We think this may cause difficulties if jobs carried out in December are included on an invoice dated January because e.g. the POD did not arrive in time.

We suggest that you consider the following strategy:

Carry out the last December invoice run with the current (15 %) rate.

Before running the first January invoice run on the new (17.5%) rate, carry out a final December run at the old rate (15%). This should prepare invoices for the late December jobs.

For your convenience please follow the links below to a document with screen shots showing how to change your VAT rate in the Vigo system along with a document from HM Revenue and Customs with details of this change.

HM Revenue and Customs - Budget 2009

How to change your VAT rate in the Vigo System