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devshb
Senior Member
United Kingdom
1904 Posts |
 Posted - December 29 2010 : 08:07:16
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Just a quick note, because with the pending UK vat increase next week, there's a very easy trap to fall into....
If there's anyone out there who's a UK merchant and you use vat inclusive product prices, then please remember that you should NOT be increasing your prices by 2.5% when the pending vat change comes in next week (unless you want to profit slightly from it, in which case that's fine and you can ignore this note).
The actual calculation of changing a vat-inclusive price when vat changes from 17.5% to 20% is to multiply your price by roughly 1.02128, (ie multiply cprice by (1.2/1.175)).
The actual increase in the product price is LESS THAN 2.5%, it's more like 2.128%.
So, if you wanted to use BYZ089 to change vat-inclusive prices, then you'd use an "increase by percentage" value of:
2.1276595
(with the round-to-2-places option set)
(same with retailprice if you use that)
eg if you have a cprice of £117.50 (ie £100 is the pre-tax price), then your £117.50*1.021276595 comes out at £120.00 when rounded to the nearest penny which is correct, whereas if you increase cprice by 2.5% you'd get a value of £120.44 which is slightly off.
If my maths is wrong, please feel free to post a reply and correct it, but I think the above formula/pct is correct.
see also:
BYZ089 - Bulk Product Updater for VPASP:
http://www.bigyellowkey.com/mysoftware_product_details.asp?prdid=293&opu=n
(with all the technology in the world, there's still nothing that beats good old fashioned pen/paper when it comes to working out these formulae!)
Simon Barnaby
Developer
[email protected]
www.BigYellowZone.com
www.BigYellowKey.com
Follow us on Twitter: http://twitter.com/bigyellowzone
Web Design, Online Marketing and VPASP addons |
Edited by - devshb on December 29 2010 08:11:28 |
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UK VAT Increases - it''s not a 2.5% price increase
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