Quote:
Originally Posted by cfrizz
So if the price of the ebook was orginally 3.99 with 10% VAT added on, it would bring the price to 4.38 if the publisher decided to pass the price on to the customer. So if this is correct, we would pay 4.38, and the publisher would have to send the additional .39 to the government, keeping the orginal 3.99. But since the price was 3.99 with and now without the VAT, I guess that means the publisher decided to take the loss of .39, and kept the 3.60 remaining from the sale of the ebook.
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This is where the confusion is, you are thinking how the US Sales Tax works
If the book is £3.99, then that is the selling price of the book, nothing extra is added onto it, it doesnt matter if the VAT is 0%, 10% or 20%, the price of the book is still £3.99, this is what we would pay
The publisher will have to pay whatever the percentage is of the VAT
The book price is static, changes to VAT do not automatically mean it goes up or down