VAT Increase – 20% standard rate from 4 January 2011

  • Anil Kanda
  • 14 Dec, 2010

The standard rate of VAT will go up to 20% from 17.5% for any supplies made on or after 4 January 2011. You may have to adjust your templates or accounting software to reflect the change.

Zero-rated supplies (such as basic foodstuffs, children’s clothing and books), exempt supplies (such as education and health) and supplies subject to VAT at the 5% reduced rate (such as domestic fuel and power) are not affected by this change.