VAT changes effective 1st January 2010

Since December 2008 and up to the 31st December 2009 the standard VAT rate has been 15.0% in the UK, and 20.5% in Eire. From 1st Jan 2010 this will change to 17.5% in the UK and 20.0% in Eire.

The seller of VAT rated goods must ensure the VAT rate they charge is correct and in accordance with the current rules. You will need to amend your Revolution software to the new charging rate effective from 1st January 2010.

If the renter paid an upfront deposit or payment before the end of 2009, they are entitled to pay the VAT rate applicable up to 31st December 2009 and beyond - if it was stated as such at the time of supply. If the renter did not pay an upfront deposit, or there is no written confirmation of the VAT rate, he or she will be charged the VAT rate prevailing at the tax point (i.e. the invoice date).

Follow these steps to change the VAT rates on your system:

1. Invoice all Rental agreements on or just before before 31st December 2009
2. Run the December month end
3. Change VAT rate on Revolution (via General Maintenance, then Set Up and General Information, and then VAT/Nominal tabs). For UK sites, change VAT code 1 to 17.5% and leave the remaining 2, 3, 4 and 5 at 0. If you are not VAT registered you should leave them all at 0. For Eire sites, please use the set up you have already and simply alter the 20.5% rate to 20%.
4. Exit Revolution (otherwise the new VAT rate will not be saved) then reopen Revolution.
5. Reopen all rental agreements where applicable.

NB. If you need to reprint an old agreement or invoice, it will show the VAT amount calculated at the VAT rate which was in force at the time the invoice was raised.