Fighting 15s and the new VAT rate

Fighting 15s is one of the few small wargames figures businesses that is registered for VAT, and as a result we will be affected by the temporary drop in VAT from 17.5% to 15% on 1 December 2008.

Because WorldPay and PayPal charge customers’ accounts at the moment of purchase, the majority of orders placed in the shop are covered by HMCE’s guidance in that orders for which payment is taken before 1 December but which are fulfilled on or after 1 December are charged at the old VAT rate of 17.5%. Therefore, if you place an order before or on 30 November, your invoice will show tax at 17.5%.

The tax change is hardly convenient for businesses with thousands of individual items to re-price, and therefore when the rate of VAT falls to 15%, Fighting 15s will apply a cost of living increase of about 2.2% so that the VAT-inclusive prices of all items in the shop remain the same as at present. This simply involves us changing the VAT rate in the shop rather than altering every price.

Customers who live outside the European Union are recommended to order now to benefit most from tax change.

Our lists, currently dated 25 July 2008, will not be updated now until after 1 December. The current lists will be invalid from 1 December, and new lists will not be sent out now until that date has passed.

The change in the VAT rate is intended to help small businesses, not the general public. In effect, using our approach, for one year it allows a modest cost of living increase in prices without actually increasing the price of items to our customers. You’ll forgive us if we turn a deaf ear to anyone who objects to us taking the extra income, which amounts to less than one penny per 15mm figure, as our income is way below national average even for the seriously deprived Isle of Wight.

When the temporary VAT decrease comes to an end on 31 December 2009, prices will rise to reflect the rate of tax. At this point we will have to alter all prices in the online shop, but at least this way we need to do so only once and can get it done during a comparatively quiet holiday period, not during this year’s Christmas rush.

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