Vat increase

Chancellor Alistair Darling announced in his pre budget speech that the standard rate of VAT will revert back to 17.5% as of 1st January 2010.

The Information Office has updated its VAT factsheet to include information about how to calculate the new VAT inclusive prices. Retailers need to be aware that they have 14 days from 1st January to change prices on their stock.

Until price markings are all changed, a notice can be displayed instore telling customers that the VAT rate has increased, and that the price will be adjusted at the till. It’s suggested that this notice be displayed prominently at the entrance to the shop and/or at the till.