The UK standard rate of VAT is changing from 17.5% to 20% with effect from Tuesday 4th January 2011. Only standard-rated transactions are affected; there are no changes to the reduced rate.
What does this mean to you and your business?
For any sales of standard-rated goods or services that take place on or after 4th January 2011, you should charge VAT at the new rate of 20%. You should use the new rate for all VAT invoices that you issue on or after 4th January 2011, except where:
- You provided goods or services more than 14 days before you issued the VAT invoice
- You were paid before 4th January 2011.
In the above cases, your sale will be deemed to have taken place before 4th January 2011, and you must use the old rate of 17.5%.
If you want to understand how the changes affect your business, click here to download the HMRC Guidance document.
The NetSuite Tax Engine allows this change to be made without any software updates, but you will need to make a few simple configuration changes to your NetSuite account. New tax codes have already been created in your account by NetSuite.
From Wednesday 22nd December, the SuiteBundle will be available to all users from the NetSuite Repository. Please click here for more information. On the same day you will also be able to access a recorded training video from NetSuite Central (Support>Help>NetSuite Central menu).
Customers who prefer to make the changes manually should contact NetSuite Support for separate instructions.
If you have any questions relating to the VAT rate change, please contact NetSuite Support or your NetSuite Account Manager.