cut the rate of VAT

Calls for leeway on VAT cut

The Forum of Private Business (FPB) has called on the Government to give small firms some leeway on implementing the recent cut in VAT. Following the Government’s decision to cut the rate of VAT from 17.5% to 15% from 1 December until January 2010, the FPB has warned that small firms will face an increased administrative burden when they calculate the amount of VAT to charge on their goods and services. The FPB said that firms will have to re–price their goods and services to account for the new VAT rate, and will need time to complete the complex tax return calculations that will result from the VAT rate changes. FPB spokesman Phil McCabe said: “The difference between small firms and big business is that larger companies have the resources to bring these changes in quick... »