VAT Rate Change

[Alison Jones]

With the VAT rate change being 1st January 2010 if it is for a service that relates to some of December 2009 and January, February and March 2010 but invoiced prior to 1st January 2010 what should the VAT rate be?

I was thinking that it would be 15% for the part of December 2009 but for the services in 2010 would be at 17.5% VAT rate but someone else told me that if the invoice date is prior to January 2010 it does not matter what the service date is and that all invoice would be 15%.
Does anyone know what is the correct way.

Thanks

Alison

[CassioAcc]

The tax point for the VAT will be when the invoice is raised, if this is before 1st Jan then 15% will apply to the whole invoice.

[MyAccountantOnline]

Hi Alison - dont know if you have seen this on HMRC's website but its quite useful when you are unsure on what VAT rates to use in various circumstances -

http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-changes.htm