FURTHER GUIDANCE ON SUPPLIES MADE ON OR NEAR 1 DECEMBER 2008

The rate at which you should charge VAT will depend upon the date of the supply, and in certain circumstances, on the nature of the supply.

Retailers:

• For goods paid for and delivered on or after 1 December, charge 15% VAT.
• For goods paid for on or after 1 December, but delivered before 1 December, charge 17½% VAT.

Wholesalers and business suppliers:

• For goods invoiced and delivered on or after 1 December, charge 15% VAT.
• For goods invoiced on or after 1 December, but delivered before 18 November, charge 17½% VAT.
• For goods invoiced on or after 1 December, but delivered after 18 November, charge 15% VAT.
• For any goods paid for and delivered before 1 December, charge 17½% VAT - the invoice date is irrelevant.

Service providers

• For services completed and invoiced by 30 November, charge VAT at 17½%.
• For services completed by 30 November, but not invoiced until on or after 1 December, charge VAT at 15%. WE DO NOT RECOMMEND THAT YOU DELAY RAISING AN INVOICE TO VAT REGISTERED CUSTOMERS.
• For continuous supplies, account for VAT at the rate applicable on invoice or receipt of payment, whichever is the earlier.
• For payments received on account (already invoiced, but in advance of the supply of services), you will already have accounted for VAT at 17½%. You can opt to re-invoice these at 15%. However you will then need to issue a credit note, and possibly refund the difference - WE RECOMMEND THAT YOU ONLY DO THIS IF YOUR CUSTOMER CANNOT RECOVER VAT.