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Old 05-01-2020, 11:13 AM   #23
Daveoc64
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Posts: 164
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Join Date: Feb 2011
Location: Bristol, UK
Device: Kindle Oasis 3 (LTE)
Quote:
Originally Posted by Pajamaman View Post
I've read through the posts, but I remain confused. So the UK government has suspended VAT charges on ebooks. However, the prices remain the same (on Amazon at least) for books where the price is set by the publisher.

Who collects VAT? Amazon, at the point of sale, or the publisher before the customer buys on Amazon?

If VAT is no longer charged by the government, then where is this still-charged percentage of the book price going? Confused.

This might just be a slow response to the VAT cut by Amazon or publishers. But even then, will customers receive a refund after this is sorted out. Double confused.
If something that includes VAT at the standard rate of 20% is on sale for 10, the VAT portion of that price is approximately 1.66. The shop keeps approximately 8.34.

If there is a change and VAT no longer applies to the product, the shop can either:

a) Reduce the advertised price of the product to 8.34, to reflect the elimination of VAT.

b) Keep the price at 10, and pocket the 1.66 that is no longer going to the government.

Many companies choose option b (or perhaps the unwritten option, where they increase the price for no reason!).
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