All VAT registered traders are reminded that the standard rate of VAT, which was temporarily reduced to 15% on 1st December 2008, will revert to the previous rate of 17.5% with effect from 1st January 2010.
Special arrangements have been put in place to ease the administrative burden of those who will trade through New Year’s Eve into New Year’s Day.
However, for most registered businesses the standard tax rate will be effective after midnight on the 31st December 2009.
Transitional arrangements and procedures for work and contracts already commenced also exist.
Collector Denis Maxwell said, "We are putting this message out now to ensure that business has the time to organise their affairs to cope with the change."
The Treasury Minister, Alan Bell, MHK commented, "It is our understanding that the rate will revert, but we will be keeping a close eye on the Chancellor’s pre-budget statement, which he will make on 9th December 2009, just in case there are any further changes."
