In his Pre-Budget Report on 24 November 2008 the Chancellor announced that the standard rate of VAT will be reduced to 15% on 1 December 2008.

This means that for any sales of standard-rated goods or services that take place on or after 1 December 2008 providers should charge VAT at the new rate of 15%.

Only standard-rated sales are affected. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions.

The 15% rate will remain until 31st December 2009, and from 1 January 2010 it will revert to 17.5%.

Orders placed with us before our christmas deadline on Monday the 21st of December 2009 will be invoiced and debited using the 15% VAT rate. Orders placed after this date will be invoiced when we return on the 4th of January 2010 and charged at the ammended VAT rate of 17.5%.

If you have any questions about the VAT rate change you can find more information on HM Revenue & Customs website by clicking here or contact us.