The UK Government has confirmed that the standard rate of VAT will be increased back to 17.5% as of 1st January 2010. Only standard-rated transactions are affected. There are no changes to other VAT rates.

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 in your NetSuite account. In order to guide you through this process, we have provided step-by-step instructions below, and we will also be hosting a free training session on Thursday, 17th December, 4:00pm GMT This session will be recorded and available for you to view online, should you not be able to make this session.

What does this mean to you and your business?
For any sales of standard-rated goods or services that take place on or after 1st January 2010, you should charge VAT at the new rate of 17.5%. You should use the new rate for all VAT invoices that you issue on or after 1st January 2010 except where:

• You provided goods or services more than 14 days before you issued the VAT invoice
• You were paid before 1st January 2010.

In these cases, your sale took place before 1st January 2010 and you must use the old rate of 15%.

Action required
This year we have developed a configuration bundle that will automatically update your tax codes list, items and open sales orders that you may have as of 31st December 2009.

You will, however, need to make some small changes to your NetSuite account so please see below for full details and instructions:

	Click here for instructions on making this change in NetSuite.
	Click here to download the HMRC guidance document.

Free Web training session
In order to provide extra support to you when making the above changes to your account, NetSuite will be hosting a FREE customer training session:

If you have any questions, please contact NetSuite Support or your NetSuite account manager.