I’m sure nearly every business owner knows that in the new year (2010! Where does the time go!?) the tax man is changing the rate of VAT back to 17.5% from 15%. This isn’t a massive issue however it does mean that the end of 2009 will see a lot of last minute purchases to try and make some savings, and shop owners will need to make the price adjustments to their stock ready for the start of business in the new year.
For business owners using an ecommerce system, the tax rate is changed differently depending on the ecommerce platform being used. For example, in Magento you can change the tax rate on all your items by changing the tax amount under the following page of the admin section:
Sales > Tax > Manage Tax Rules
Once inside this section, select the tax rate you are using (most likely named Retail Customer – Taxable Goods) and change the value from 15.0000 to 17.5000. Note that doing this will maintain the price of the item to the customer, but increase the tax rate. This may result in you updating the cost of individual items which could be a big job if you have 100s or even 1000s of products! To make sure that you have setup the backend of your ecommerce platform you should contact your original developers to ensure that it is all working correctly. If you have any questions or need assistance in changing the tax rate of your ecommerce platform, feel free to contact us.