Revenue has announced further information for a range of measures which were originally announced in the July Jobs Stimulus and included in the Financial Provisions (COVID-19) (No 2) Act 2020. In a press release, Revenue commented on the really difficult trading environment for many businesses and Revenue’s willingness to work with businesses experiencing temporary cash flow difficulties.
As one of these measures from 1st September 2020, for a period of 6 months, the standard rate of VAT will be reduced from 23% to 21%. All services or goods provided up to the end of August must be invoiced with 23% VAT and thus should have an invoice date of no later than 31st of August. All services provided between 1st of September and 28th of Feb next year should have a VAT rate of 21% and should have invoice dates within that range too.
Of course the Mind My Business system handles all of this automatically. Sign up at https://mindmybusiness.ie/free-trial/ to try it out for yourself.