VAT changes for 1st January 2010
Following confirmation in yesterday’s pre-budget report that VAT will be returning to 17.5% as of the 1st January, eBay have updated their advice on VAT changes. This will only affect you if you’re VAT registered.
eBay’s help page confirms that listings can be edited in bulk and that fixed price listings don’t need to be ended to make the VAT changes. Changing prices to take account of VAT is more time consuming as you’ll need to calculate them for each listing (unless you sell everything at the same price). Personally I won’t be editing prices, mainly because I never changed them a year ago when VAT dropped to 15%.
There are bound to be some listings sold with the wrong VAT rate unless you edit your listings at the stroke of midnight. If you use Selling Manager Pro you’ll be able to manually edit the inclusive VAT rate prior to printing invoices on the Sales Record page.
If you intend running auctions over the New Year make sure that you use the new 17.5% VAT rate when you launch your listings. Although they’ll display the wrong VAT rate for the last few days of 2009, when they end after January 1st 2010 the correct rate will be used.
Will you be changing your prices when the VAT rates change? Or like me did you not change them when the rate dropped?