National News: January VAT change
January VAT change
On the 1st January 2010 the VAT rate will change back to 17.5% from the 15% it was changed to for 2009.
“The changes to the Cross-border VAT rules announced at Budget represent a significant reform of the VAT regime applying to services and introduce important changes to the intra-EU reporting regime for goods. These changes, adopted by EU Finance Ministers in February 2008 and December 2008 will:
“To comply with the new rules, businesses will need to make fundamental changes to their current VAT accounting and reporting processes in order to be ready for 1 January 2010. Whilst some issues of interpretation and implementation of the new rules, which need to be consistently applied across the EU, remain under discussion, HM Revenue & Customs (HMRC) recognise that business needs certainty at the earliest possible stage in order to be ready for January 2010. This article summarises how the changes will impact on business and provides links to initial guidance on how HMRC expects these to be implemented in the UK, highlighting those areas where uncertainty remains. This guidance will be updated as outstanding issues are resolved with changes being highlighted in the annex at the end of this article. Departmental guidance and the relevant Public Notices will be updated to reflect the changes.
“Businesses need to consider whether they will be affected by the changes and what changes to their accounting system will be required to implement these new rules from 1 January 2010, to account for VAT under the reverse charge, and/or to capture the information needed to submit ESLs. They should also consider obtaining the VAT Registration Numbers of regular business customers in other EC countries.”
http://www.hmrc.gov.uk/
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Posted Wednesday December 30th 2009
By The Onlines