The VAT increase from 19 to 21 percent will take effect from October 1. For online stores, this means that adjustments need to be made in the VAT calculation on products, shipping costs, and/or services. The online retailer must make choices that have both financial and operational consequences.
The current VAT rate of 19 percent is going to 21 percent. The VAT rules for 0 percent and 6 percent remain the same. For online retailers, this means they must adjust the VAT settings of their webshop. The VAT increase has the most impact on online stores that supply consumers; for businesses, VAT remains deductible, but consumers will feel this 2 percent directly in their own wallets.
Impact on pricing policyFrom a competitive perspective, you might wonder whether passing on this 2 percent resolutely is wise. In addition, the general pricing policy in many online stores is carefully chosen. Amounts are often rounded to 99 and 95 cents. An amount of 79.95 euros would become 81.29 euros if passed on one to one after October 1.Operational consequencesThe complexity in implementing the measures lies in the fact that the online entrepreneur cannot simply use October 1, 2012, as a threshold date. If a product is ordered and invoiced on September 23 but delivered on or after October 1, the online retailer must calculate 21 percent VAT. If they do not do this, it will cost them a significant amount of money.Administrative pressure
In short, it is not the order or invoice date that is determining, but the delivery date. If the delivery time is variable in the online store, this directly creates significant administrative pressure. Furthermore, standard online store software is not set up to correctly interpret these rules. It is therefore important to inventory well in advance what the right action plan is to process the VAT increase.
Source: Twinkle.nl
