Quote:
Originally Posted by cashman
what i cannot get me head around, is how will small non computerised places alter all their prices? can't see it being so easy.  then have to change em back in a few months when VAT reverts to 17.5%. |
Well they just divide their current selling price by 1.175, which gives the nett selling price and then multiply by 1.15 to give the new gross selling price (with the new rate of VAT). The VAT will be 15% until 31/12/2009 so most of the stock would be presumably have been sold by then. Also unless a business has annual sales of over £67,000 it does not have to be register for VAT.