UK VAT Reduction - 17.5% > 15%
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- mimeartist_com0
probably isn't maths, and pennies make pounds.
- 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
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.
- mimeartist_com0
Do/Did you work at Woolworths?
- 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
- _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?
- 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
- 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
- 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.
- 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.
- mimeartist_com0
Yes, Geoff Lloyd (not the DJ) has a lot to say.
- 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, it was so that the price had to be put through the till, rather than the till operator 'coining' it in :)
- sorry to be a smart arse :)mimeartist_com
- Most people think it is because it looks like less, but you're right :)emecks
- emecks0
Perhaps :)
I'm just a bit cynical maybe. Like I said my pricing is excl. VAT so non VAT registered clients will actually pay less whilst VAT registered clients will pay exactly the same (once they get their VAT back from the HMRC)
On a tangent, do you know why prices ending with 99p started??
- mimeartist_com0
yeah but retail doesn't work like that, and agreed unless you don't earn over 60k or whatever you won't need to do it... plus you'll find both a lot of retail strange prices for big items to show VAT is reduced, but also companies reducing their pre-VAT price... so that the inc VAT price will be all nice and 49.99 or whatever
- emecks0
^Agreed James,
The simple point is in consumer retail the price is almost never £100 + VAT. It is £117.5 (which includes VAT)
Will retailers all drop their prices to reflect the VAT reduction? No way will they do that.
My products and services are all exclusive of VAT and B2B so no, I will not be "trying to gain".
- Laurent0
Emeck > we had 2 mails from Canon and Tamrac and Pentax that price (cost price = Net Net) will go up from December 1st for some and January for others.
So, the VAT thing is rather inexistant for the customer.....or i am incorrect on that bit?- VAT will drop but cost will go upLaurent
- that's exactly what I'm saying. The consumer will not profit - only VAT registered companies will.emecks
- precisely, the incl. VAT price will not change. just the VAT portion of it will get smaller.emecks
- WRONG, unless you're a snake!mimeartist_com
- your groceries will not change a penny in price - no way.emecks