VAT opportunity for some, nightmare for others

Whilst retailers are faced with another January of changing prices - this time detrimentally, some businesses will benefit and save 2.5% on their marketing budgets if they think ahead.  Any business that is VAT-exempt or VAT-zero-rated has to 'shoulder' the full cost of the VAT increase of an initial 2.5%, although it is rumoured that in order to 'balance the books' a further rise of VAT could await the country in the coming months.  There are numerous businesses who accept this as an inevitable cost but in reality that need not be so.

VAT-zero-rated businesses have the opportunity of buying whilst VAT is held at 15% to save on the tax increase and build up a bank of services and solutions in advance of the change.  Marketing departments are the most likely to have large budgets for 2010 that could be contracted now to make a direct saving before the change.

We supply a number of 'volume' related services and software licences including email, SMS, data, email append and iSurveys where we sell volume credits that can be used over time.  We are able to take orders now and invoice for those services and then provide the services over the course of the next 12-24 months.

What is more, we also have experience in identifying marketing spend that should have been VAT-zero-rated at the outset and have had success in helping our clients recover overpaid VAT for the past 3 years (the maximum rebate period) because they didn't realise that marketing print, data management and fulfilment should not have been subject to VAT (depending on the design and content).

For any further information or just to see if we could save money contact us.  We also have a client who specialises in saving money and recovering duplicated payments and to see what they are able to achieve simply click here.