Quote:
Originally Posted by fjtorres
Here's THE BOOKSELLER:
https://www.thebookseller.com/blogs/...-story-1201919
...Now that VAT has been scrapped, those 99p prices have dropped by 20%...
...Should they reflect the VAT cut so that all e-books are now 20% cheaper than they were? Or do they carry on with a pricing policy that keeps those 99p price points?
If they go with the former, then readers get a 20% saving... |
Actually, if 20% VAT is removed the selling price drops by 16.7%, not by 20%.
For example, if an item is priced at $10 + 20% VAT = $12 selling price.
The $2 VAT is 16.7% of the $12 selling price, so if the VAT is removed the price drops 16.7%.