UK VAT Reduction - 17.5% > 15%
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- 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
- Nairn0
hack.
- ian0
So hang on. The UK is reducing its VAT and you're complaining?
In Ireland we're getting a VAT increase on Jan 1st plus an increase in tax on earnings. Bloody moaners.
- Dancer0
I'm with moth here:
moth:
"Every poorly developed website will run into problems I expect.":p
- maximillion_0
easy solution: increase yr prices by 2.5% and do nothing
- because that is not mathematically correct?mimeartist_com
- 17.5 down to 15. reduction in 2.5. so for consumer prices its finemaximillion_
- graham0
wtf you didnt set the VAT rate as a variable??
- mimeartist_com0
yeah, a pain in the arse changing percentage from 17.5 to 15
- _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?
- Laurent0
Decided by politicians....without thinking of the repercussions on business hassle....aw what a great idea!!!!!
Tills - ebusiness....politicians not only stirring the shit of this crisis but acting the wrong way....£29.99 with 17.5 or 15%.....who cares...a few pennies...but also the manufacturers a increasing the cost price by 15% from Monday....so, utterly pointless.
- emecks0
It only becomes a bitch if you quote prices excluding VAT.
If your products / services include VAT all you need to do change the fraction of 7/47 to 3/23 - every business that is VAT registered in the UK has been sent a letter on this from HMRC.
Where it is a nightmare is for ongoing services, particularly if you take payment in advance.
- 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
surely that is the other way around? if you quote price without VAt, then they are the same prices? or am i gettttttttttttttttttttttttttting confused?
- correct cost price at £1 ex vat stays the same unless manufacturers increase itLaurent
- you're confused.com both of you.emecks
- read the letter you got from HMRC - it's very straightforward.emecks
- 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.
- emecks0
^ An example.
Today:
You buy a TV for £400 on the highstreet - the £400 already includes VAT @ 17.5% (£59.58)From Monday:
You buy the same TV for £400 on the highstreet - the £400 already includes VAT @ 15% (£52.17)The customer still pays the same.
Where it gets difficult is in this scenario:
You run a hotel, a guest is staying from today until Friday next week and has paid in advance. The price they've been charged was £100 per night excluding VAT. Now that is tough.- of course....Laurent
- the tv won't be 400 quid it will be £340.43p + VAT which will be £391.49mimeartist_com
- unless increase of ex vat price...Laurent
- You really believe it's going to get passed on to the consumer?? The price will remain the same.emecks
- WRONG... check the newspapermimeartist_com