What is being changed, for whom and when?
The general VAT rate of 19% will change to 21%. The low VAT rate of 6% will not change. The increase from the 19% VAT rate to the new 21% VAT rate will be effective as of 1st October 2012 and this change is applicable to all companies.
A transitional arrangement will be implemented for newly built houses which have been purchased before 28th April 2012 and with a completion date after 30th September 2012. The following two questions are taken from the brochure “Questions and answers about the VAT increase to please click here to view
Q1: Are companies allowed to charge 21% VAT for services delivered after 30th September 2012, but invoiced before 1st October 2012?
A1: Yes. To avoid companies having to raise additional invoices for the differences between 19% and 21% for the services they deliver after 30th September 2012 (which fall under the 21% VAT tariff). Invoices should be raised with the 21% VAT. The company who received the invoice is allowed to reclaim this 21% VAT.
Q2: Under which section, until 1st October 2012, (on the VAT declaration form) should the 21% VAT be reported?
A2: If for services delivered after 30th September and before 1st October an invoice is raised with 21%, then the VAT should be reported in section 1c of the VAT form. If this is causing a problem then the company is allowed to report this in section 1a (currently 19%).
As of 1st October 2012 the general VAT rate of 21% should be reported in section 1a. This is the section in which, until the 1st October 2012, the 19% VAT-tariff should be reported. If you are using SunSystems to prepare our monthly or quarterly VAT reporting we advise you to contact Eclipse and discuss the changes required within your current set-up. However, if your VAT reporting is not managed within SunSystems this may be the correct moment to implement a structure and solution to cater for this.
If you have any queries on the upcoming VAT changes, please do not hesitate to get in touch with Luuk Dammerman on +31 653 130 652 or send an email.