VAT reduction
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- mimeartist_com0
retail is a lot different to a service though... you're not really selling you're services for 79.99 an hour or whatever... unless you're logoagogo.com
- moth0
Well I'm in retail so that's how I'm thinking about it!
- well shut up then :Dmimeartist_com
- Ah, Now I get you. Disregard my post below. It was typed as you clarified my confusion with this post.Horp
- Horp0
I was also using that as an example, hence my putting "by way of example here".
I think we need some disambiguation on this subject. Who is talking about VAT charges on consumer goods and who is talking about VAT charges on B2B... because the two things are dealt with very differently.
Moth, your eample of selling things in a one pound store suggests you are discussing VAT as a retailer selling to the end consumer, not a supplier invoicing clients. In that case, yes, it makes sense to have an all-in price. You are not required to declare what portion is VAT to the end consumer.
But for B2B, you have to rigidly adhere to the rules of VAT and you wouldn't embed a VAT cost into a 'rate' for services or products.
- moth0
Why not?
It doesn't matter how you do it. It just matters which you look at it.
- moth0
Fuck me. This is incredibly dull!
- Horp0
"Why not?"
Moth, are you asking "why not apply the same to B2B?"
Becuase there is no tangible benefit to doing so. In fact you would make your accounting almost unbearable for no reason.
- Horp0
Fuck me, this IS incredibly dull. I'm off.
- johnnnnyh0
yeah vat is dull. But essentially you're correct moth, £1 shop will earn 2.5% more. If you sell services inclusive of VAT (like a fixed priced project for example) then the VAT decrease is good. Otherwise, you just take less and pay the government back less.
We have a few non-vat registered clients so this will improve things for them I suppose.- "will earn 2.5% more OR will pass the saving on to consumers in the hope of stimulating sales"Horp
- mistermik0
thank fuck we're not in charge
- mimeartist_com0
yeah all depends if you're going to pass the benefit onto your customers or not
- Doorman0
yep from Monday 15% (for 13 months)
- Doorman0
However, a friend of mine has been told that their ebusiness (external company) will charge them £240 to amend their site due to this VAT reduction rate.
So, If the Gvt decides something like that, why should a business pay £240 to amend something (database hardcoded stuff) which is beyond their ctrl?
- mistermik0
shame them.