17/12/2009
As we are sure you are aware, on 24 November 2008, the Chancellor announced that the standard rate of VAT will be reduced to 15% as of 1 December 2008. The standard rate of VAT will now return to 17.5 per cent on 1 January 2010. For any sales of standard-rated goods or services that you make on or after 1 January 2010, you must charge VAT at the rate of 17.5 per cent. If you have a cash business, and calculate your VAT using the VAT fraction, you must revert to the VAT fraction of seven forty sevenths from 1 January 2010.
The change only applies to the standard VAT rate. 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 unaffected by this change.
There are several areas within Jonas which must be modified in order to reflect a new VAT rate. Last year a document was released which outlined the necessary changes and detailed how to make these changes either manually, or by using the utility.
If you have any questions, please feel free to contact Jonas Support for further assistance.