Printware News

Beat the VAT Increase

After 13 months at 15%, the rate of VAT is going back up to 17.5% on January 1^st 2010, which will cause a headache for retailers and consumers alike. Like most retailers, Printware will not be increasing the cost of its goods on January 1^st but the amount of tax you pay on these goods will increase. As an example, a printer costing £500 ex. VAT would be £575 inc. VAT at 15%, whilst at 17.5% the total cost inc. VAT would be £587.50.

It’s customary to blame retailers for the price increases and ask why the increase has to be passed on –  in short, the retailer merely collects VAT on behalf of Revenue and Customs and never sees any benefit from it. Printware will not make one penny of extra profit as a result of the VAT increase.

Most businesses are, of course, VAT registered and will be able to claim the tax back anyway. However, if you’re not VAT registered, now is a good time to make that printer purchase or stock up on those toners before you have to pay the taxman extra for the privilege.

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