New 15% VAT rate

[JimboS]

Seems too simple so just want to check.

As I am using Tax inlcuvie pricing all I need to do is:

Settings - Business Settings - Tax and chnage the Tax rates for VAT to 15

James

[Mike Hughes]

Yes.

And if you've entered your prices as 'Tax inclusive' then they'll stay the same.

If you've entered them as 'Tax exclusive' then they'll be slightly lower.

Mike

[guccij]

Yes, that's it if you don't want to pass on the savings to your customers.

[TraceyHand]

I know what you mean but yes.
If you're not planning on passing the saving on to the customer, then just change the VAT rate.
Just glance an eye through T&Cs, checkout/product pages to make sure you don't have any other references to 17.5% too

We're not passing the 'saving' on either, however, as we're still on V8, our prices are VAT exclusive so, as I have to change all the prices anyway, I'm (finally) upgrading the site to V9 and will change everything to the VAT inclusive price instead which will be easier to maintain in the long run (and quicker to change BACK to 17.5% again!)

[Mike Hughes]

(and quicker to change BACK to 17.5% again!)

There's a story today that a draft version of the report said they were going to put rates up to 18.5% when the 15% runs out. http://news.bbc.co.uk/1/hi/uk_politics/7749195.stm

It's being denied, but there will have to be more tax increases coming. A little extra tax on the top 2% of earners will not repay the huge deficit that's coming.

Mike

[TraceyHand]

yeh, I read/heard that this morning too, Mike.
Either way, if you're using Actinic on V9 and using the 'tax inclusive' pricing, it's immensely easier to change your VAT rate than any other set up.

[Mike Hughes]

Either way, if you're using Actinic on V9 and using the 'tax inclusive' pricing, it's immensely easier to change your VAT rate than any other set up.

I totallly agree. It also makes the cart and checkout much easier for customers to understand as it shows the proper product prices. I've been waiting for this for a long time and I'm now working on my upgrade to V9.

Mike

[TraceyHand]

I'm now working on my upgrade to V9.

Mike

say it aint so!

[Mike Hughes]

say it aint so!

It had to happen sometime and the VAT change alone justifies me moving on from V6.

I'm not going to rush it though. I've had the design done for 6-7 months now, just been waiting for V9.0.3. The only thing stopping it going live now is that there's a lot of new products plus images and content to update.

Mike

[TraceyHand]

I've had the design done for 6-7 months now, just been waiting for V9.0.3.

that's about how long we've been waiting for 9.0.3, isn't it? LOL

[cheeseontoast]

15% Vat Rate

Does anybody know if there is a quick and easy way to reduce prices by the 2.5% - prices have been entered in Inclusive, but they dont change.

[guccij]

Does anybody know if there is a quick and easy way to reduce prices by the 2.5% - prices have been entered in Inclusive, but they dont change.

The inclusive prices don't change - but the VAT element does.

If you want to change all the prices to reflect the drop in VAT from next Monday then you have these choices:

• Edit the catalog in Access - extreme caution advised
• Export the catalog and edit it in Excel
• Change the prices by hand

NB it's not simply a question of taking 2.5% off the inclusive prices shown. You need to divide the price by 1.175 then multiply it by 1.15.

[leehack]

Multiply your current prices by 0.9787234042553190 to get the new price.

[Darren B]

theres loads of ways but to be honest, unless your spending 10k on a car no one is going to notice and im betting a few are going to say "is that it" when they realise how much difference is made

[Jarvis]

This tread is dealing with the 'technical' issues of the change of rate.
I have made a seperate post here in the 'Business Issues' forum that looks at the 'Ethical' approach to it.
I would be interested in your views.