|How do I change the price of my items after the new 20% VAT rate has been applied to my catalog?
|On 4 January 2011, the standard VAT rate in the UK will change from 17.5% to 20%. |
If you would like to keep the price of all of your items the same despite this VAT rate change, the following method will allow you to do so in a single batch processing operation without having to individually change the price of each of your items. This operation can be applied to some or all of the items in your shop.
Let's say that you are currently selling an item for £100 Excl. VAT at a VAT rate of 17.5%. The final price of this item is currently £117.50 Incl. VAT.
Starting on 4 January, the final price of this item will automatically be changed to £120 Incl. VAT.
If you decide that you want the final price of this item to stay at £117.50 Incl. VAT, we recommend the following procedure:
- Go to the Commerce > Items (Products-Services) menu
- Select the products you would like to include in the batch processing procedure using the check box to the left of the product and the drop-down list at the bottom of the page.
- Click on the Batch Processing button.
Select the following action: Modify the percent of the [Price (Excl. VAT)] field.
The following formula can be used to determine the value to be applied to your prices:
( (1.175/1.20) - 1 ) = -0.02083333
When converted to a percentage, you get a value of -2.083333%
Enter this value in the Percent field. It will then be applied to your prices during the batch processing procedure.
Once this batch processing operation has been completed, the final price for your products will correspond to the same prices Incl. VAT that were present before the VAT rate change.
All modifications are permanent. Therefore, we highly recommend running a test on 1 or 2 products before modifying your entire catalog, especially to make sure that the percent you're using does not generate any decimal place rounding problems (in order to avoid prices that look like £117.51 instead of £117.50).