Increase in the standard rate of VAT

In his 2010 Emergency Budget the Chancellor announced an increase in the standard rate of VAT from 17.5 per cent to 20 per cent. This is effective from 4th January 2011.

This change affects any VAT registered business that sells or purchases goods or services that are subject to the standard rate of VAT.

For detailed information about the change click on the link below:

HM Revenue & Customs Guide for VAT Registered Businesses

For SunSystems users, it is advisable that you are ready to accommodate this change and that plans are in place to make any necessary tweaks, either to your processes or configuration. This will ensure integrity of processing, completeness and accuracy of reporting and minimised business impact. Specific issues that should be considered include:

  • The transaction phase when both old and new rates will need to be handled.
  • The impact on VAT reporting and VAT returns, particularly during the transition period.
  • The impact on processes, transactions flows, business rules and interfaces.
  • The impact on partial exemption calculations.

You should be able to address these changes yourself but if you need any assistant then our Helpdesk will be more than happy to assist you.