UK VAT Reduction - 17.5% > 15%
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- mistermik0
i got my vat letter from gov yesterday - it does explain it all quite nicely.
A lot of the above is voodoo talk. Have a olok on gov site for pdf explaining.
- mimeartist_com0
Yes, Geoff Lloyd (not the DJ) has a lot to say.
- moth0
Each e-comm site I've made VAT has been calculated backwards from the the total. Thus making this a non-issue.
Of course, it shouldn't be too tricky to increase, sitewide, every price by 2.5% as Max said. If you have to do it individually, product by product, then you really should shoot the developer.
- olli1010
I'm curious to know how this is affecting those who work on supermarket accounts.
I can't even imagine how crazy it is having to reprint every single product, plus vouchers/coupons/discounts.
- They wont.
They wont pass it on!moth - exactly.emecks
- i've seen ads last night on telly saying 'includes VAT adjustment'mimeartist_com
- They wont.
- mimeartist_com0
Moth... the problem caused is exactly like people like yourself, through no mistake of your own I might add... take this example...
say I have a product for £1000,
then the price is £851.06 + VAT...
now if I add the 2.5 percent to the price... it would be £872.35
now if I add 15% VAT to that it is £1003.19
So if you want to keep you're price, then you need to take the final price with original VAT, and take 15% off that... eg...
1000 / 1.15 = 869.57 and then add 15% VAT which should bring you back to your 1000
- mimeartist_com0
It is only that I'm pretty sharp with numbers that I've seen some of the calculations people are making that made me shudder :) and your accountant jump off a building
- _salisae_0
Three lawyers rent a hotel room for the night. When they get to the hotel they pay the $30 fee, then go up to their room. Soon the bellhop brings up their bags and gives the lawysers back $5 because the hotel was having a special discount that weekend. So the three lawyers decide to each keep one of the $5 dollars and to give the bellhop a $2 tip. However, when they sat down to tally up their expenses for the weekend the could not explain the following details:
Each one of them had originally paid $10 (towards the initial $30), then each got back $1 which meant that they each paid $9. Then they gave the bellhop a $2 tip. HOWEVER, 3 • $9 + $2 = $29
The lawyers couldn't figure out what happened to the other dollar. After all, the three paid out $30 but could only account for $29.
Can you determine what happened?
- moth0
If you're sharp with numbers I'm surprised at the way you've approached it.
Your price point for that product should be £1000, regardless of VAT.
- if things are regardless of VAT what would you do if VAT went down to 5% (although legally it never will)?mimeartist_com
- I'm worried you're running a store and don't understand this.mimeartist_com
- mimeartist_com0
Do/Did you work at Woolworths?
- mimeartist_com0
The VAT decrease was to get people spending again... how would that happen if you don't change the price to reflect that? You're entitled to do it, but people may go elsewhere... the only reason that it should make a lot of work for you, and the whole point of this thread, is if you change your base price.
- moth0
What you makes you think that the price of a £1000 product NEEDS to be priced down to the exact penny?
I would probably remove 10% on all prices, and then work out the VAT, leaving me marginally better off.
- mimeartist_com0
probably isn't maths, and pennies make pounds.