The Chancellor of the Exchequer has announced changes in the VAT rate from Tuesday 4th January 2011.

These are major changes that need to be implemented so please follow the steps below:

The best time to do these changes is after close of business on Friday 31st December and before opening of business on Tuesday 4^th January.

For the 4th January 2011 VAT changes, please amend your standard VAT setup as shown below marked with an S you will also need to change the code I to 20%.

If you already have an old standard rate setup then this will need to be changed to 17.5%. If not, you will need to create a rate called OS at 17.5% so that this can be used when crediting old transactions in the future.

Once these changes have been made all users are required to logout and log back into Horizon for the changes to take effect.

Before changing the rate to 20% You need to:
1.    Invoice everything to date on the current rate of 17.5%.
2.    Post all Invoices to prevent accidental changes. 
 
If you go back into any un-posted invoices after making the changes to the VAT rate make a note of the VAT total before you start changing invoice lines.

To Change VAT Rates

1. Select Setup

2. Select VAT

3. Change rate from 17.5 to 20 on I & S VAT Lines

To add an OS rate to allow for transactions at 17.5%

4. Press Add

5. Fill In Details as shown

6. Confirm to save

Please note It is your responsibility to ensure the correct rates of VAT are applied to transactions in accordance to HM Revenue & Customs regulations.