Simply Thank You Flowers - VAT / Duty
Standard VAT Rate
As you will no doubt be aware, the government is temporarily lowering the standard VAT rate from 17.5% to 15% as of 1st December 2008.
We will be passing this change on to our clients, and as such you will notice Simply Thank You price changes from Monday 1st December 2008.
However, in a package of government changes, duties on alcoholic goods are being raised. This change does affect Simply Thank You significantly, and as such we have no alternative but to pass on the duty rises.
Duty rises
The following amounts (net) will be added to the sales price of gifts from 1st December 2008:
Wine = £0.12.
Champagne & Sparkling Wine = £0.16.
Spirits = £0.47.
Fortified Wine = £0.15.
If you have any queries please do not hesitate to contact us.
What is VAT?
Value Added Tax is a tax that you pay when you buy goods and services in the European Union (EU), including the United Kingdom.
Where VAT is payable it's normally included in the price of the goods or service you buy. Some goods don't attract VAT.
A little about VAT..
Value added taxation avoids the cascade effect of sales tax by only taxing the value added at each stage of production. Value added taxation has been gaining favor over traditional sales taxes worldwide.
In principle, value added taxes apply to all commercial activities involving the production and distribution of goods and the provision of services. VAT is assessed and collected on the value added to goods in each business transaction.
Under this concept the government is paid tax on the gross margin of each transaction.