VAT - changes in the standard rate
The measure
As announced in the 2008 Pre-Budget Report, the standard rate of VAT will revert to 17.5% from 1 January 2010. This follows the temporary reduction of the standard rate to 15% for the period from 1 December 2008 to 31 December 2009.
Who will be affected?
All persons or businesses registered for VAT.
When?
The standard rate will revert to 17.5% from 1 January 2010.
Our view
The rumours of an increase in the standard VAT rate to 18.5% have fortunately proven to be unfounded.
