{"id":21496,"date":"2021-08-20T15:08:30","date_gmt":"2021-08-20T14:08:30","guid":{"rendered":"https:\/\/bigredcloud.com\/?post_type=docs&#038;p=21496"},"modified":"2022-11-10T17:21:24","modified_gmt":"2022-11-10T17:21:24","password":"","slug":"vat-rate-changes","status":"publish","type":"docs","link":"https:\/\/bigredcloud.com\/en\/documents\/vat-rate-changes\/","title":{"rendered":"VAT Rate Changes"},"content":{"rendered":"<p><strong>As part of the July Stimulus Package the Minister for Finance has announced a temporary reduction in the standard rate of VAT for a six month period. On 1 September 2020, the standard rate of VAT will change from 23% to 21%. The rate is due to revert to 23% with effect from 1 March 2021.<\/strong><\/p>\n<p>For most transactions between VAT registered traders, it will be \u201ccash neutral\u201d; however, there are a number of administrative issues to take into account.<\/p>\n<p><strong>Invoices<\/strong><\/p>\n<ul>\n<li>On or after 1 September 2020 VAT invoices issued by a VAT registered person (who is not on the cash receipts basis) to a VAT registered person, a public body or a business carrying on a VAT exempt activity should show VAT at the new 21% rate. This is so even if the goods or services were supplied before this date.<\/li>\n<li>A trader on the cash receipts basis who is required to issue a VAT invoice to another VAT registered person should show the VAT rate which applies on the date of the supply, not on the date of receipt of payment.<\/li>\n<li>Goods or services which are actually supplied to consumers prior to 1 September 2020 are taxable at the 23% rate even though they may be invoiced after 1 September 2020.<\/li>\n<\/ul>\n<p>To implement these changes in Big Red Cloud \u2013 Firstly add a VAT Rate of 21%<\/p>\n<p>Go To Setup \u2013 VAT Rates<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21497\" src=\"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141033063.png\" alt=\"\" width=\"539\" height=\"630\" srcset=\"https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141033063.png 539w, https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141033063-257x300.png 257w\" sizes=\"auto, (max-width: 539px) 100vw, 539px\" \/><\/p>\n<p>and say yes to making the change.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21498\" src=\"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141045383.png\" alt=\"\" width=\"616\" height=\"162\" srcset=\"https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141045383.png 616w, https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141045383-300x79.png 300w\" sizes=\"auto, (max-width: 616px) 100vw, 616px\" \/><\/p>\n<p>Once on the next screen, add the new VAT Rate:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21499\" src=\"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141112262.png\" alt=\"\" width=\"737\" height=\"357\" srcset=\"https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141112262.png 737w, https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141112262-300x145.png 300w\" sizes=\"auto, (max-width: 737px) 100vw, 737px\" \/><\/p>\n<p>Set it as default if you wish, and Save<\/p>\n<p>Next, go to Utilities \u2013 Edit Product VAT Rates<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21500\" src=\"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826142048903.png\" alt=\"\" width=\"417\" height=\"311\" srcset=\"https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826142048903.png 417w, https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826142048903-300x224.png 300w\" sizes=\"auto, (max-width: 417px) 100vw, 417px\" \/><\/p>\n<p>Set the existing rate to 23% and new rate to 21%<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21501\" src=\"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141213834.png\" alt=\"\" width=\"587\" height=\"220\" srcset=\"https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141213834.png 587w, https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141213834-300x112.png 300w\" sizes=\"auto, (max-width: 587px) 100vw, 587px\" \/><\/p>\n<p>Click on Update, and then click on OK when done.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21502\" src=\"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141222226-1.png\" alt=\"\" width=\"585\" height=\"226\" srcset=\"https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141222226-1.png 585w, https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141222226-1-300x116.png 300w\" sizes=\"auto, (max-width: 585px) 100vw, 585px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h2>VAT Rate Changes For Recurring Invoicing:<\/h2>\n<p>Go To Books \u2013 Recurring Invoicing<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21503\" src=\"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826143552594.png\" alt=\"\" width=\"359\" height=\"349\" srcset=\"https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826143552594.png 359w, https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826143552594-300x292.png 300w\" sizes=\"auto, (max-width: 359px) 100vw, 359px\" \/><\/p>\n<p>On the bottom of the screen, choose Utilities and then click on Edit VAT Rates<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21504\" src=\"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826143611608.png\" alt=\"\" width=\"238\" height=\"124\" \/><\/p>\n<p>Set the existing rate to 23% and new rate to 21%<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21505\" src=\"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141213834-1.png\" alt=\"\" width=\"587\" height=\"220\" srcset=\"https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141213834-1.png 587w, https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141213834-1-300x112.png 300w\" sizes=\"auto, (max-width: 587px) 100vw, 587px\" \/><\/p>\n<p>Click on Update, and then click on OK when done.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21506\" src=\"http:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141222226-2.png\" alt=\"\" width=\"585\" height=\"226\" srcset=\"https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141222226-2.png 585w, https:\/\/bigredcloud.com\/wp-content\/uploads\/2021\/08\/capture20200826141222226-2-300x116.png 300w\" sizes=\"auto, (max-width: 585px) 100vw, 585px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As part of the July Stimulus Package the Minister for Finance has announced a temporary reduction in the standard rate&#8230;<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"doc_category":[211],"doc_tag":[],"class_list":{"0":"post-21496","1":"docs","2":"type-docs","3":"status-publish","5":"doc_category-vat"},"year_month":"2026-04","word_count":316,"total_views":"0","reactions":{"happy":"0","normal":"0","sad":"1"},"author_info":{"name":"apathak","author_nicename":"apathak","author_url":"https:\/\/bigredcloud.com\/en\/author\/apathak\/"},"doc_category_info":[{"term_name":"VAT","term_url":"https:\/\/bigredcloud.com\/en\/docs-category\/vat\/"}],"doc_tag_info":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.4) - 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