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 MobileRead Forums > News Reducing VAT on e-boooks, to match printed books rates

05-05-2020, 09:27 PM   #136
AnotherCat
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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%.

05-06-2020, 06:24 AM   #137
fjtorres
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Quote:
 Originally Posted by AnotherCat 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%.
Hey, they're book sellers, not MBAs. You can't expect them to be too good with math.

 05-26-2020, 06:30 PM #138 John F Wizard   Posts: 4,824 Karma: 35747310 Join Date: Feb 2009 Device: Kobo Glo HD So, what is the current state of things?