November 2008


United Kingdom

UK VAT RATE REDUCTION to support companies in UK and foreign companies doing business in UK

The British government has decided to act swift and fast by announcing a reduction of their VAT rate from

  • 17.5 % to 15 % effective December 1, 2008

The VAT rate reduction will last until December 31, 2008 and the rate will go back to 17.5 % effective Jan. 1, 2008.

You may want to review your long term contracts or agreements with UK suppliers and clients and carefully check UK VAT and Import VAT invoices especially if a VAT refund is not applicable for certain items or industries.


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