Reduction in the standard rate of VAT
The standard rate of VAT will be temporarily decreased from 23% to 21%, with effect from 1 September 2020. This will last for 6 months, whereupon the rate will revert back to 23% (from 1 March 2021).
This decrease will apply to all goods and services which are currently subject to VAT at 23%. Reduced rate of VAT and zero-rated goods and services are not affected by the change.
From 1 September 2020, you are still likely to receive Purchase Invoices raised prior to the change using the old rate of 23% and you may also need to raise Credit Notes using the old rate of 23%.
What you need to do
You will be required to change the VAT codes in Evolution M to reflect this; please click the button below to download documentation explaining how to do this. Please ensure you do this as soon as possible so your system is updated ready for 1 September.