Automatic VAT Changes eShop and what you need to do.

[BE_Product_Mngr]

The changeover of VAT from 17.5% to 15% will take place automatically on eShop on December 1st, 2008. If your shop is running on gross prices (i.e. tax is included in the price) - the VAT update will reduce the price of your products (as the VAT rate has been reduced by 2.5%).   

Please be aware that net prices will not be changed (i.e. if you show prices excluding VAT, the prices will not change). If you do not wish to have your prices reduced you need to make the necessary price update.  To do this navigate to your products (Products Menu > Products); select the product(s) you wish to change and change the 'price' field.  

If anyone has any questions or concerns please let me know. 

Thanks,

Charlotte

[Bertie]

How time passes!

Will there be an automatic increase in the vat rate back to 17.5% on eShop on 1st January 2010?

Regards

Bertie

[LisaBT]

Hi Bertie,

Yes thats correct,

Lisa

[eShopTeam]

Hello Bertie,

To add a bit of detail to Lisa's message: All shops, which do not have a customised tax matrix (i.e. the merchant clicked "Customise" in "Settings -> Tax calculation -> Tax matrix") will benefit from the automatic update.

If you are not sure whether you did customise your tax matrix, you can check this in "Settings -> Tax calculation -> Tax matrix". If the button at the bottom of the table is labeled "Customise", your tax matrix will be updated automatically. If the button is labeled "Save" you will have to update the tax matrix manually.

Sincerely,

[Bertie]

Many Thanks.

[18ME]

Hi,

I know how to change the tax matrix to 17.5% but what if I want to keep my gross prices the same?

For example; I have a product that sells for £199 but I don't want to increase the gross price, which would be £203.32. How do I get around that without changing every single price separately?

Many thanks

Martin

[graemewilliams]

I'm very surprised with the way the VAT change has been implemented. All my retail prices are listed as gross (I suspect like most users). I wasn't planning to increase them straight away with the VAT change, but gradually increase them over time as I update products.

Now though I find BT have increased them for me (I've got 100s of products). I wasn't expecting this at all. I thought the change would only show on customer order receipts, invoices, etc.

The software (or BT?) should be more flexible. At least allow us users to choose if we want to pass on the VAT increase to our customers or absorb them into our own costs. Now I'm faced with having to manually change the price of 100s of products. Thanks!

[18ME]

I'm sure BT have the solution for this, well I hope so as I'm still waiting to adjust my website with the new VAT rate as soon as they tell me how.

If I don't get a response from the forum I suppose a phone call in the morning to them it will have to be.

[stal]

This is ridiculous, we have hundreds of products and we do not want the gross price to increase. BT must do something about this immedietally or we will cancel our contract.

Ben Nevis Clothing

[graemewilliams]

A note for everybody - Check also your delivery charges. I discovered that these too were  increased by BT during the VAT change.