Pegasus: VAT Rate Changes on 1/1/2010

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January 1st 2010 sees the VAT Rate increase to 17.5% again.

The UK Government announced earlier this year that the rate of Standard VAT in the UK will increase back to 17.5% (after it was temporarily reduced to 15.0% on 1st December 2008) on 1 January 2010.

 
Please read relevant section below to see how you are affected;
 

Opera II & Opera II SQL

Versions 6.70 and ABOVE

You will need to enter the new VAT Rate, and the date in which it becomes effective, against each relevant VAT Code within the VAT Processing section.

Versions BELOW 6.70

You can use the same procedures you used when the VAT Rate decreased on 1st December 2008 last year, either;

1) Upgrade your current version to version 6.70 or later and follow the above instructions

OR

2) Bill all the outstanding SOP/Invoicing Documents (i.e. Quotes, Orders, Deliveries etc), before the end of December 2009 at 15% and on all new SOP/Invoicing Documents use a VAT Code of the appropriate rate of 17.5%

OR

3) Use the VAT Utility that was available last year if you ordered it

Opera for Windows

You can use the same procedures you used when the VAT Rate decreased on 1st December 2008 last year, either;

1) Upgrade your Opera for Windows to Opera II version 6.70 or later (and follow the above instructions relating to Opera II & Opera II SQL)

OR

2) Bill all the outstanding SOP/Invoicing Documents (i.e. Quotes, Orders, Deliveries etc), before the end of December 2009 at 15% and on all new SOP/Invoicing Documents use a VAT Code of the appropriate rate of 17.5%

OR

3) Use the VAT Utility that was available last year if you ordered it

Capital Gold Accounts

1) Bill all the outstanding SOP/Invoicing Documents (i.e. Quotes, Orders, Deliveries etc), before the end of December 2009 at 15% and on all new SOP/Invoicing Documents use a VAT Code of the appropriate rate of 17.5%

OR

2) Order the VAT Utility from us that will be made available during December 2009.

Special Rules

If the goods are provided before the increase in VAT (e.g. 22/12/2009) and then billed after the VAT increase (e.g. 02/01/2010), the user can opt to apply a 15% VAT charge to the Invoice. 
This is valid as the issue of stock was made whilst the VAT Rate was 15% and the Invoice was raised within 14 days of supply.

For further details please see http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-changes.htm

Note: there will be a small charge made for the supply of the VAT Utility should you request it.

 
For further information please contact
our Pegasus Team !!

2 thoughts on “Pegasus: VAT Rate Changes on 1/1/2010”

  1. Just to address the above comment, I believe that it doesn’t relate to the blog where we describe the implications of the VAT Change back to 17.5% on the 1st January 2010 within the Pegasus suite of Accounts Software.

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