VAT holiday over
The Government’s one-year VAT holiday will end on 1st January 2010, with rates expected to return to 17.5% from the 15% we have enjoyed all year. HMRC have confirmed the normal tax point rules will apply: date of invoice or date of payment, whichever comes first.
So if the invoice or payment is made before 1st January, VAT will be at the rate of 15% - anything after that date will be charged at 17.5%. To help us through the transition, HMRC have issued some guidelines we should note:
- VAT should be calculated at 17.5% from 1st January.
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