VAT Rate Reduced to 15%
1 December 2008
On a temporary basis from today, 1st December 2008, to 1st January 2010, the standard rate of VAT will be charged at 15% instead of 17.5%, as announced in the Chancellor of the Exchequer’s Pre-Budget Report.
The Government’s fiscal policy may be a welcome step for consumers but the hasty implementation of the measure may lead to increased administration for businesses in respect of altering prices.
However, it should be noted that anti-forestalling legislation is in place to prevent businesses exploiting the VAT rate changes.
Should you require further information see HM Revenue & Customs: Pre-Budget Report 2008 - VAT Rate Changes