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VAT Rate change on Jan 1st 2012

The effect of the upcoming VAT rate change on your Computerised Accounting Package.

From the 1st of January 2012, the standard rate of VAT for the Republic of Ireland will be increased from 21% to 23%. The new 23% rate should be used on all invoices issued from then on. Full details about this change can be found on the Revenue website.

Steps to Change your Computerised Accounting Package

Take a Back Up

First of all, please unsure that you have taken a back-up of the relevant data-set before applying any of the changes detailed below. This will ensure you do not lose or change any important information.

Incorporating the 23% rate to your relevant accounts package

It is recommended that you CHANGE the existing 21% default rate to 23%, and then set up a NEW code for the old 21% rate. This assures that new invoices issued will automatically use the new 23% rate as default. If an invoice needs to be issued at the old 21% rate, you can select this from the new code you have set up.

Changing VAT rates in different Accounting Packages

Amending the VAT rates on most accounting packages is usually done through the dataset configurations. Here you can usually set up new VAT rates, and also set the default standard rate to be used in all relevant transactions.

Examples of how to change the following commonly used accounting packages:

TASBooks: Central / VAT Rates and Reporting / Maintain VAT Rates, (program 031).
Sage 50 Accounts: Settings / Configuration / Tax Codes

For more detailed assistance or queries, please contact Shane Carroll, Business Advisory Services Manager on or 01 4786600