A simple guide to the change in the standard rate of vat to 20
A guide to VAT- the change in the standard rate A SIMPLE GUIDE TO THE CHANGE IN THE STANDARD RATE OF VAT TO This is a basic guide prepared and issued by HM Revenue and Customs HMRC to assist in understanding the changes It is distributed by ACCA for members to use as they wish It is an introduction only and should not be used as a de ?nitive guide since individual circumstances may vary Speci ?c advice should be obtained where necessary Emergency Budget on June In the Emergency Budget on June the Chancellor announced that the standard rate of VAT will be increased to on January What do I have to do For any sales of standard-rated goods or services that take place on or after January you should charge VAT at the new rate of This means that cash businesses which currently calculate their VAT using the VAT fraction of should from January use the new VAT fraction of Which of my sales are a ?ected Only standard-rated sales are a ?ected There are no changes to sales that are zero-rated or reduced-rated for VAT Similarly there are no changes to the VAT exemptions Any sales you make at these rates are una ?ected For your standard-rated sales it depends how you normally account for VAT a If you are a retail business making mainly cash sales to customers not registered for VAT e g a shop restaurant takeaway or hairdresser You should use the new rate for all takings that you receive on or after January Except for where your customer pays for something they took away or you delivered before January e g where customers have an account with you In this case your sale took place before January and you must use the old rate of b If you are a business that sells mainly to other VAT-registered businesses and have to issue VAT invoices You should use the new rate of for all VAT invoices that you issue on or after January Except for where you provided goods or services more than days before you issue the VAT invoice For example if you issue a VAT invoice on January for goods or services provided before December or you were paid before January In these cases your sale took place before January and you must use the old rate of What about continuous supplies of services e g work in progress For continuous supplies of services such as ongoing construction work you should account for the VAT due whenever you issue a VAT invoice or receive payment whichever is the earlier In Cthese cases invoices issued or payments received on or after January will be subject to VAT Are there any special rules for sales spanning the change of rate Yes If you have received a payment or issued an invoice before January for goods that will be provided or services delivered after January you have a choice You can choose to account for
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- Publié le Jul 17, 2021
- Catégorie Geography / Geogra...
- Langue French
- Taille du fichier 30.2kB