Value Added Tax
| From |
1 Dec 2009 |
1 April 2010 |
| Standard rate |
15% |
17.5% |
| VAT fraction |
3/23 |
7/47 |
| Reduced Rate |
5% |
5% |
| Taxable Turnover Limits from
1 May 2009 |
|
|
Registrationlast 12 months or
next 30 days over |
£68,000 |
£64,000 |
Deregistrationnext 12 months
under |
£66,000 |
£62,000 |
Cash accounting scheme |
£1,350,0000 |
Annual accounting scheme |
£1,350,000 |
Optional flat-rate scheme |
£150,000 |
|
VAT: Change of standard rate
The standard rate of VAT will return to 17.5% from 1 January 2010. Targeted
legislation will counter schemes that 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%.
Cross-border VAT: Changes to EC sales lists
This measure introduces a requirement for UK businesses that supply services
where the place of supply is the customer’s country to complete EC
Sales Lists (ESLs) for each calendar quarter. The changes will have effect
on and after 1 January 2010.
Cross-border VAT: Changes to place of supply of services rules
Changes were announced to the place of supply of services rules. The place
of supply rules determine the country where a supply of services is made
and where any VAT is payable. They also determine whether, if VAT is due
on a supply, it should be accounted for by the supplier of a service or
their business customer.
The new rules aim to ensure that, as far as possible, VAT is due in the country
in which the service is consumed (e.g. where the customer is established) rather
than where the supplier is established. The result for UK business customers
is that they will be liable to account for UK VAT on most services provided
by their overseas supplier under the reverse charge provisions, rather than
the supplier charging VAT. This forms part of a package of changes designed
to modernise the VAT system for cross-border trading, and to counter fraud.
The changes will come into effect from 1 January 2010 across the EU.
|
