Scholastic UK Limited VAT Rate Change from 15% to 17.5%
Effective 1st January 2010
I am a Consumer, how will the VAT increase affect me?
The good news is, the vast majority of the products we sell are books which are exempt from VAT so there will be no impact. Where the product contains a non book element which may be vatable (such as a CD) then the good news is Scholastic will not be passing on any of the 2.5% VAT increase onto you, the retail price will remain the same pre and post VAT rate change.
I am a bookseller, how will the VAT increase affect me?
Again the vast majority of the product we sell are books so there will be no impact following the VAT rate increase. Where the item does contain a vatable element, Scholastic’s policy is not to increase the retail prices as a direct result of the 2.5% increase. The good news for you is the net price will be reduced following the change and you will be able to claim more from HMRC if you are VAT registered.
Example:
- VAT rate 15% , Gross £9.99, net £8.69, VAT reclaimable £1.30
- VAT rate 17.5%, Gross £9.99, net £8.50, VAT reclaimable £1.49
Systems
Scholastic can confirm that it has updated all of its internal systems and websites to charge the correct rate of VAT on all of its products and services supplied with effect from 1st January 2010. Updated net prices are available on request.
How will Scholastic handle returns after 1st January 2010?
It is the responsibility of our customers to notify us of the rate of VAT applicable to any returns physically received by Scholastic after 1st January 2010. Where such notification is not received, at Scholastic’s discretion and in the absence of evidence to the contrary, the returns will be assumed to be associated with original sales transactions that occurred after the change in VAT rate, and therefore the new rate will be deemed to apply. This is because the industry’s existing returns procedure does not require attribution of returns to specific original sales transactions.
SCHOLASTIC CONTACTS:
All queries regarding the implementation of the VAT change should be referred to HM Revenue & Customs.
- Technical queries
Financial Controller
Janice Williscroft
01926 816269 - IT queries
IT Business Analyst
Steve Wilson
01926 816211 - Commercial queries
Finance Director
Nicola Dixon
01926 816246
Entities covered:
Scholastic Limited, trading as Scholastic Children’s Books, Scholastic Book Fairs Scholastic Education Publishing and Mary Glasgow Magazines, together with Scholastic Book Clubs Limited. Sales of titles published by Chicken House Publishing Limited (for which Scholastic Limited acts as agent) are also covered.