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, aff_link("http://pages.ebay.co.uk/help/vat-increase.html","eBay have updated their advice on VAT changes","","UK"); ?>. 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?
Didn’t change. Won’t be adding 2.5% on either, to much grief.
Changing prices to take account of VAT is more time consuming as you’ll need to calculate them for each listing. There are bound to be some listings sold with the wrong VAT rate unless you edit your listings at the stroke of midnight.
Seems like there ought to be an automated pricing tool to handle that.
what a flaming idiotic idea the drop to 15% was
Best thing you’ve said all year and totally agree 😀
No changes here. Silly idea in the first place.
Re: Vat change, I also share the general view it was a waste of time and the money would have been better spent improving infrastructure and new hospitals aiding the badly hit construction industry.
However the VAT reduction wasn’t done JUST so customers got a better deal, this is a naive view and over simplifies it, many retailers, eg Poundland didn’t make the changes and thus benefitted in extra profits from basically charging more. The effect of this is to help the businesses through the recession and keep employment high. The VAT cut helped most businesses, but the consumer didn’t see the benefit, without the cut more jobs would have been lost,with associated further negative multiplier effects. Fact.
If the VAT cut helped businesses that much you’d think with the economy shrinking more than expected and the heralded end of the recession fizzling out to an “opps it’s still going on” that they’d keep the VAT cut a little longer if it was actually working.
The country is a long way out of trouble. I’m guessing there will be more companies go bust and more layoffs next year as (hopefully) the country starts to come out of recession than there has been this year. The economy could grow 5% next year and businesses would still be worse off than they were this time last year.
The admin involved far outweighed the savings on vat. The government don’t know how difficult it is to run a business.
Well done to eBay for having the tool this time round
I didn’t bother reducuing prices this time last year and in all likely hood won’t be increasing them this year (aside from the usual manufacturer changes).