ROI VAT Change

Affected Period
01/09/2020 - 28/02/2021



Run type

27/08/2020 15:32

Last Updated
28/08/2020 07:32

Dear Market Participant,

This market message is to confirm that SEMO will be applying the upcoming ROI VAT rate change to Market Operator invoices as per guidance on the revenue website.

 SEMO plan to process the VAT rate for MO invoices in accordance with the guidelines published.

Full details of the revenue guidance can be found at the below revenue website link.

Don’t hesitate to contact SEMO at should you have any further queries on this update.

Kind Regards,

SEMO Finance

Reduction on the Standard Rate of VAT

From 1 September 2020, a 6-month reduction in the standard rate of VAT from 23% to 21% will apply.

In general, goods and services supplied before 1 September 2020 are liable to VAT at the rate in place at the time of supply, namely 23%. A trader supplying goods and services to private individuals should always apply the VAT rate in place at the time of supply. However, where goods and services are supplied in August 2020 by a trader who is obliged to issue a VAT invoice, and that trader issues the invoice after 31 August 2020, the rate in place in September applies, namely 21%. 

Any VAT credit note or debit note relating to a supply of goods or services, which contains a VAT adjustment, should show VAT at the rate in place at the time the original invoice was issued. For example, if goods are supplied in August 2020 and a credit note is issued in September 2020 (due perhaps to an adjustment in the price of the goods or services), the rate of VAT on that credit note is 23%. This is because the goods or services were supplied when the rate of VAT was 23%.

Further detailed information regarding the procedures to be followed by VAT registered traders when increases or reductions in VAT rates take place .