Firstly let’s talk about the saving. You might have forgotten that the 20% VAT change is coming on the 4th January 2011 (I doubt it!). Yes that right, not far off now. Our advice would be to get a few of your phone numbers purchased before the New Year and save a little money by doing so. See our main site menu to get your number today.
With the drop of Value Added Tax (VAT) to 15% in 2008 it was always going to cause a future increase to the consumer once the markets became stable. In January 2010 we had an increase back to the original 17.5%. However the UK is now going to have another increase in VAT, going up to 20% starting January 4th 2011.
Basically anyone purchasing our goods on or after the 4th January 2011 will be affected by the 20% VAT charge. There are exclusions from VAT such as Children’s clothing, Food and Magazines, but that’s about it – No exclusions on phone numbers!
At 17.5% we have currently the lowest rates of VAT in Europe, so the increase to 20% VAT will bring us more in line with every other country. Not a great thing to smile about I know and it will possibly adjust some people’s attitudes to forking out on expensive items like Televisions or cars and perhaps slow down on the amount of fast foods takeaways they have in the short term, but we shouldn’t see much of a big change in the smaller business purchases.
With this VAT increase, companies unfortunately have no choice but to abide by charging the current rate. At City Numbers we will be keeping our prices the same and will not be putting our excluded VAT prices up, however due to this government change we, along with all other companies, have to now charge 20% VAT on those prices.
Please remember that our pricing on our website is Ex-VAT (always has been and always will be).
Happy New Year to you all and I hope the 2.5% pinch doesn’t hurt you too much!