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VAT rate to return to 17.5% on 1 January 2010 as planned


The measure

In his Pre-Budget report, the Chancellor confirmed that, as planned, the VAT rate will return to 17.5% with effect from 1 January 2010.

Who will be affected?

All VAT registered businesses will be affected by this. They now have certainty about the changes that they need to make to implement the January rate change.

When?

As previously announced, the rate change will take effect from 1 January 2010.

Our view

The confirmation provides welcome confirmation that rumours about an even higher VAT rate were unfounded, for now at least.

Following the success of our 'rate change' helpline last year, Deloitte will be launching a new helpline soon, to provide help to businesses in the run up to and immediate aftermath of the rate change.