VAT Reduction in UK

We are releasing a utility by Thursday to handle this:

1- Create a new Sales Tax/Vat 15%

2- Create a new Item Tax/Vat 15%

3- Calculate what all prices will be at the new VAT 15% - Maintain the same Margin ? Maintain Retail Price Rounding

4- Save the New information and apply the RRP price before all the other prices so as to be able to start printing labels to be attached to the new items

5- Have all new prices apply automatically on the assigned date

6- Note if the prices in the columns are blank ? leave it blank

7- If there is a sales Price only change the sales price maintaining the sales Margin but do not change starting date and ending date of Sales price. Apply new sales price in the database on 1st Dec 2008.

This is a utility that will be £150 per database and £500 for an HQ environment. Contact me if you are interested.

You could apply a discount of 2% at the point of sale - and promote this instore!

This will get you over the initial hurdle of relabeling all of your stock and give you time to apply Afshin's tool, possibly a department/ category at a time.

Yes you could do this. HOwever lets be clear. YOU DO NOT HAVE TO RELABEL RIUGHT AWAY. Because the prices you will charge will be less than than the label. So the law allow that, and customers will not complain. The other problem is having new prices that have 15% built in VAT/TAX and are still rounded to have a retail price ahead of time. Current RMS wizards cannot change the price and calculate thecrrect % margin of profit with price rounding unless you already have the Item Tax/Vat changed. You cannot changethat as you are still using 17.5 until Dec 1st. The Utility willovercome all these issues. And for UK£150 for a store this is an affordable utility. Especually the way things are going the chancellor may change the Tax/Vat again :).

Afshin,

Your utility looks great but I'm going down the sale route with prices from Monday being discounted by about 2.12%. I'm not proposing to change any labels yet (if ever). I'm sorry but in these awful retail times even £150 is more than I want to spend. I agree it might be great value for some but it's not something I need right now. Actually the thing I really don't need is a VAT change which costs big money and with 6 days notice during our busiest time of the year (hopefully!).

Utility is ready for anyone that wants it for both store and hq. It will change theprices and if you do not print labels right away it is not an issue - you can do this slowly as you have time.

We have added a few bits to our Store & HQ VAT adjustment Utility that also includes: - adding VAT % to the supplier item tab - making sure that when items are returned (through recall transaction) that were purchased at 17.7% VAT the return after Dec 1st also returms them at !7.5%.

I just received the email where Microsoft tells people how to change the VAT/TAX for customer. This is very dangerous as they suggest to change the existing 17.5% Item VAT/Tax Code to 15% and Bob is your uncle. They also look at the VAT/Tax issue in a very isolated way. NO this is not just wrong logic, it is dangerous because:

1. The old transaction history is linked to a VAT/TAX code not a %. So your historical reports like detailed sales report where you print the VAT content as well are now going to show 15% VAT for October and November where they should be 17.5%

1. Retail Price rounding is not addressed at all

2. Supplier Record è Item Tax is not addressed at all

1. Return in December of items purchased in Nov/Oct are going to be returned at 15% where they should be returned at 17.5%. Customer will not see the difference BUT the retailer will be paying 2.5% more to the VAT authority on every past Dec return

2. Purchase Orders created but NOT sent should also be updated to 15% rather than 17.5%

1 create new Sales Tax 2 create new Items Tax 3 in Wizards select Inventory Wizard 4 Task 170: Assign Item Sales Tax run through but do not commit 5 Export to a csv file, Open in excel and change the all the column ?New Item Tax? to the name you gave the new Item Tax 6 Save it and back in SO manger import the changed file 7 Click on Commit

This applies the new vat rate to all the Items, Matrix master items remain unchanged as to the vat rate applied.

8 Inventory Wizard 9 Task:110 Change Item Prices , select all depts. 10 Select ?Regular Price? in the box Price to be changed 11 In the Percentage box input 2.125% 12 Apply any rounding you want to apply Next & Finish

This changes the Retail price to reflect the lower VAT rate

"Alastair" wrote:

Yes you are correct this way the VAT and the Sales Report with VAT are correct but you still should manage: - Item Tax/VAT on Supplier Item Tab so your PO get associated with the correct Tax/VAT - Return of your items from before December (unless you have a program logoc installed to do it automatically) you must rememebr after recalling an item to be returned to change theVAT/Tax (Shift+F12) and select the 15% VAT Item Tax.

Thanks for the helpful postings so far, we've got our items updated now so everything seems to be selling correctly at 15% but we've just found that all the Supplier "Item Supplied" entries are still at 17.5% and there doesn't seem to be any way to change these either by wizard or otherwise.

Has anyone else worked this out please?

Many thanks

"Alastair" wrote: