15% VAT rate extended for New Year's Eve traders
The Govt have announced that pubs, clubs, restaurants and other retail businesses remaining open past midnight on New Year's Eve will be allowed to continue charging VAT at 15% on their sales until they close or until 6am on 1 January 2010, whichever is the earlier.
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The 'period of grace' is restricted to those businesses that account for VAT at the point of sale such as businesses on a retail scheme - pubs, shops, restaurants etc and to the cost of calls or texts made and billed in the early hours of January 1. It will not apply to businesses that account for VAT on the basis of VAT invoices issued or to mail order or on-line retail sales.
Similar arrangements will apply to telecommunications companies in respect of calls and texts made up to 6am on 1 January.
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