In November 2008 the Chancellor announced a temporary reduction in the standard rate of VAT to 15 per cent between 1 December 2008 and 31 December 2009. This time period is shortly coming to an end. From 1 January 2010, the standard rate of VAT reverts to 17.5 per cent for:
• supplies of goods and services made on or after 1 January 2010
• imports on or after 1 January 2010, and
• acquisitions of goods from other Member States on or after 1 January 2010.
Other rates of VAT are not affected. Businesses must ensure they make the modifications necessary to deal with the change in the standard rate.
