Revenue has published a VAT Information Leaflet setting out details of the decrease in the standard rate of VAT from 21.5% to 21% from 1 January 2010. The leaflet outlines the implications of the change for VAT-registered traders.
The leaflet sets out the general VAT rule for traders accounting for VAT on the invoice basis and for traders who account for VAT on the cash basis. The effects of the change of VAT rate on; invoices, credit notes, advance payments, contracts with fixed interval payments, existing contracts at 1 January 2010, continuous supplies, credit sales and stock on hand, are outlined in the leaflet.
Zero rated goods, such as; basic foodstuffs, children's clothing and footwear, oral medicines, and goods and services subject to VAT at the 13.5% rate such as; catering, new houses, construction services and solid fuel are not affected by the change.
The VAT Information Leaflet can be accessed here.