Changes to UK and European Union (EU) VAT in 2010
13 November 2009
Some VAT-related changes will be take place in January 2010.
Firstly, the standard UK VAT rate will revert back to its former value of 17.5%. The changes customers will be required to make to their
Dynamics NAV / Navision systems
will be similar to those made when the VAT rate dropped to 15% at the end of 2008.
Secondly, European Union (EU) VAT 2010 changes also come into force in January 2010. These
are primarily concerned with the reporting of VAT on services
supplied to other EU member states.
The main changes are:
- Changes to the place of supply rules for services
- An obligation to make an electronic sales list report of cross-border services
- Changes to the method by which applications for VAT refunds are made.
See Microsoft's
'Support for the VAT 2010 Package in the European Union' white paper for a more detailed explanation and to see whether or not your company is affected.
Companies affected by the changes will need to update their
Dynamics NAV system with a small feature package including changes to the relevant VAT reporting features, before the end of 2009.
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