The new 20% standard rate applies to goods or services to be delivered or performed on or after 4 January 2011.

Anti-forestalling rules will apply to artificial arrangements involving a VAT invoice being issued, or payment being made in advance, where the goods or services are not due to be delivered or performed until on or after 4 January 2011.

It creates a supplementary charge to VAT at 2.5% where the customer cannot recover all the VAT and at least one of the following conditions are met:

• the suppler and customer are connected persons
• the value of the supply, and any related supplies made under the same scheme, exceeds