Changing your VAT settings

Important!

Changing the VAT settings on your account will impact your product's prices.

Our system stores all product pricing excluding VAT (but displays to you in the admin system how you entered it). When you change your VAT settings, the price stored in our database will remain the same, but we'll start to apply VAT according to your new settings. Read the guidance below for the different scenarios so you know what will happen to your pricing.

Please note!

The guidance below also relates to your delivery pricing.

Changing from not VAT registered to VAT registered

If your account is set as not VAT registered and you would like to change it to VAT registered you will need to set whether your current prices already include VAT or do not include VAT (and VAT should be added).

If you set that your products' prices already include VAT (and we shouldn't add VAT) then we will add 20% to the previously entered price.

For example, if a product cost £100 before you make the change it will now cost £120. The price of the product in the admin system (when adding/editing a product) will be displayed to you as £120.

If you choose that your products' prices don't include VAT (and VAT should be added) then we will only add 20% to the price of the product on your website.

For example, if a product cost £100 before you make the change it will now cost £120. The price of the product in the admin system (when adding/editing a product) will be displayed to you as £100 and displayed on the website as £120.


Changing from VAT registered to not VAT registered

If the price of your products were entered containing VAT (and we weren't adding VAT) and you change to not VAT registered then we will remove VAT from your product's prices. For example, a product that cost £100 will now cost £83.33

If the price of your products were entered without VAT (and we were adding VAT) and you change to not VAT registered then we will remove VAT from your product's prices. For example, a product that cost £100 (where you had entered the price as £83.33) would now cost £83.33.