VAT Amendments

The main changes with respect to VAT are:

Rent Changes

With effect from 1st December 2008 the level of Value Added Tax was reduced from 17.5% to 15%.

For all expected rent payments generated from 1st December 2008 onwards the VAT charged on a property will be automatically calculated at 15%.

Similarly, all the rent shortfalls generated from expected transactions for rent due on, or after, 1st December will also have VAT charged at 15%.

In anticipation of further changes to VAT, a new field has been set up within the Tax and Base Rates screen to allow for these future changes. Any future expected transactions generated with an effective date on or after 1st January 2010, when the VAT will change again, will be calculated at the new rate.

Invoicing

Following the reduction in the level of VAT all invoices with an invoice date from 1st December will be generated with VAT charged at the new lower rate of 15%.

Any invoices with an invoice date prior to 1st December 2008 will still be charged at 17.5%.

Please note that amending an existing invoice date from prior to 1st December to after 1st December will automatically adjust the VAT.