Commentary

V3.575 Change of VAT rate and liability

Part V3 Supplies, acquisitions and imports

V3.575 Change of VAT rate and liability

V3.575 Change of VAT rate and liability

Regulations1 made under VATA 1994 Sch 11 para 2(6) direct retailers to make an adjustment when there is any change of VAT on any supply. Notice 727 defines a change of VAT rate as either an existing rate of VAT which is changed, or a new rate of VAT which is introduced2.

If the change occurs during a VAT accounting period, the retailer is obliged to carry out two scheme calculations. One calculation is carried out up to the date of change, and a second calculation is carried out from that date. The amounts

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