UK / Ireland VAT Rate Changes
The Irish Government have increased the VAT rate in Ireland from 21% to 21.5% with effect from 1 December 2008. If you have a VAT registration in Ireland you need to be aware of this rate change and ensure that you issue invoices at the correct VAT rate and complete VAT return declarations correctly.
HMRC have published an information sheet to specifically advise non-EU businesses that make “electronically supplied services” in the UK and Ireland following the VAT rate changes in both countries.
The online declaration will automatically calculate the VAT rate using the new 21.5% rate. Where you have made supplies to Ireland in the quarter ending 31 December 2008, you must manually calculate the VAT due. This figure should then be entered in the relevant box in place of the automatically calculated figure.
Similarly the online declaration for the UK will also automatically calculate the VAT due using the new 15% rate. Businesses will need to enter a manually calculated figure to take account of the VAT change during the quarter.
Other EU countries
There have been no other VAT rate changes during the quarter and online declarations for all other EU countries should be completed as normal.