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VAT Reduction

Community Veteran
Posts: 1,100
Registered: ‎05-04-2007

Re: VAT Reduction

The business can reclaim the VAT on goods bought but must add VAT to the goods sold if VAT registered. As already mentioned the consumer price is unlikely to change in the short term, but the receipt will reflect the higher nett price. The business then pays the difference (reclaims it) to the government.
Moderator
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Posts: 28,151
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Fixes: 257
Registered: ‎14-04-2007

Re: VAT Reduction

We'll see Smiley
@adiewoo  Grin Grin

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jmd
Grafter
Posts: 2,933
Thanks: 2
Registered: ‎30-07-2007

Re: VAT Reduction

adiewoo - that is a good one! Grin
there are two of those shops in Worksop........................ be interesting to see what they do!
techguy
Grafter
Posts: 2,540
Registered: ‎12-09-2008

Re: VAT Reduction

Shame its only temporary but thanks for promising to pass it on so quickly PN.
itsme
Grafter
Posts: 5,924
Thanks: 2
Registered: ‎07-04-2007

Re: VAT Reduction

On a PN £14.99 package will the new price at the 15% VAT be £14.67 or £14.62?
Also what will the referral discounts be as these contain a 17.5% VAT element?
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Moderator
Posts: 20,721
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Fixes: 559
Registered: ‎11-01-2008

Re: VAT Reduction

Pretty sure it would be 14.67
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Moderator
Moderator
Posts: 28,151
Thanks: 2,306
Fixes: 257
Registered: ‎14-04-2007

Re: VAT Reduction

I have to 'adjust' the commercial software at work. So far I haven't been 'advised' as to what adjustment to make Undecided

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Community Veteran
Posts: 3,486
Registered: ‎03-10-2008

Re: VAT Reduction

Quote from: Strat
I have to 'adjust' the commercial software at work. So far I haven't been 'advised' as to what adjustment to make Undecided

Isn't VAT rate just a simple variable - that only needs to be changed once and in one place ?Huh
Community Veteran
Posts: 19,142
Thanks: 383
Registered: ‎12-08-2007

Re: VAT Reduction

As usual it's all smoke and mirrors from this bunch.  Here's an interesting point from a blog I read this morning on petrol prices:

A permanent 2p duty increase in fuel tax has been introduced in the pre-budget report, which despite being presented as revenue neutral, will mean that fuel prices will rise over the next year and beyond.
The move to increase fuel duty by 2p has been introduced to offset the rate cut in VAT from 17.5% to 15%. However, although the VAT holiday will last 13 months but the 2p duty rise is permanent.
When VAT returns to 17.5% motorists will still be paying the higher rate fuel tax of 52.35p per litre and the higher rate VAT, making tax 74% of the total cost of a litre of fuel, and instantly boost the cost of fuel by 2p a litre.
techguy
Grafter
Posts: 2,540
Registered: ‎12-09-2008

Re: VAT Reduction

Think all non-essential workers should go on strike for two days and show the government that they work for us and not the other way round.
Esssential workers would be doctors/nurses, ambulance staff and Transco engineers.

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Registered: ‎14-04-2007

Re: VAT Reduction

Here's something to cheer you all up...

Speakers required Smiley

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community
Grafter
Posts: 666
Registered: ‎31-07-2007

Re: VAT Reduction

For all trying to work out the VAT part of any included price (when it is 17.5%), here is a tip:
Take the full price and multiply by 7 and divide by 47 (remember Jumbo-Jet!)
This then gives you the vat .
Take this away from the included price and then add 15% to it to find the new VAT prices
Therefore, what was £14.99 will be £14.67...Q.E.D.!
Community Veteran
Posts: 18,662
Thanks: 1,976
Fixes: 23
Registered: ‎06-11-2007

Re: VAT Reduction

For those (like me,) who don`t know what Q.E.D. stands for,
from Wiki
"Q.E.D. is an abbreviation of the Latin phrase "quod erat demonstrandum" which means literally, "that which was to be demonstrated". The phrase is written in its abbreviated form at the end of a mathematical proof or philosophical argument, to signify that the last statement deduced was the one to be demonstrated, so the proof is complete."
Grin Cheesy Grin
Community Veteran
Posts: 19,142
Thanks: 383
Registered: ‎12-08-2007

Re: VAT Reduction

Quote from: Strat
Here's something to cheer you all up...

Speakers required Smiley

Thanks Strat, that's really funny  Grin
madjbright
Grafter
Posts: 184
Registered: ‎09-06-2007

Re: VAT Reduction

Surely it is easier to divide by 1.175 which gives the nett price and then multiply by 1.15 to give the new price.
14.99 / 1.175 = 12.76 * 1.15 = 14.67
Same answer but only 2 calculations.