New VAT rate for e commerce websites
Rapid change needed to accommodate new VAT rate
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NetNews our ONLINE NEWSLETTER (Chancellor announces new UK VAT rate )

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The Online Newsletter from Net Commerce Solutions

VAT rate changes to 15%.  MOST E COMMERCE WEBSITES NEED TO CHANGE

Pre Budget Report

In his Pre-Budget Report on 24 November 2008, the Chancellor announced that the standard rate of VAT will be reduced to 15% on 1 December 2008.

This means that for any sales of standard-rated goods or services that take place on or after 1 December 2008 providers should charge VAT at the new rate of 15%.

Only standard-rated sales are affected. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions.

The 15% rate will remain until 31st December 2009, and from 1 January 2010 it will revert to 17.5%.

Websites need to Change

If you are charging VAT on items sold on your website, you will need to make changes to accommodate the rate change.  Typically, changes are needed to the Basket Page to make the correct calculation.  If your quoted prices include VAT, you should consider the effect of the change on the prices you quote on your website.  If the prices quoted on your website are exclusive of VAT, you may only need to change the VAT calculation.

You should also check for mentions of the VAT rate elsewhere on your website.  For example, your Terms and Conditions may quote the current 17.5% VAT rate.  Similarly text on your Basket Page may need to be changed to reflect the new rate.

Contact Net Commerce Solutions

The changes need to be made this week;  if your website is affected, you are strongly advised to contact your website developer as soon as possible to ensure the changes are made in a timely way.  Net Commerce Solutions is ready to support its customers in making these essential changes.  Contact your Net Commerce Solutions consultant on 0870 246 7642 or email info@net-commerce-solutions.co.uk

Dave Abernethy,
Managing Director,
Net Commerce Solutions Ltd

Tel:     (+44) (0) 870 246 7642

info@net-commerce-solutions.co.uk     Web site: www.net-commerce-solutions.co.uk

Registered in England and Wales. Company number 4052885: 6 Bramble Close, Harpenden, Hertfordshire, AL5 4AN

 
 
   
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