VAT Changes

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The chancellor has announced that the VAT rate will be increased to 20% from 4th January 2011 until further notice.

Our intention at Aquiss is to pass on the increase to all our customers, from 4th January 2011 including subscription contracts signed from today.


What has happened?
The chancellor has announced an increase to the VAT rate from 17.5% to 20% from January 4th 2011 until further notice. This therefore will reflect prices for a number of products and services we offer.


Will there be any price changes?
It is a complex operation to change all our billing systems, but we're determined to get it right for our customers. We'll be publishing any new prices of products and services, where we have no choice but to make minor adjustments as soon as possible.

Our first intention from this date is to raise all invoices based on the new VAT level, therefore ensuring that we comply legally. However, going forward all packages, ranges and upgrades will naturally be reviewed to ensure they all within cost tolerances.


I pay by Standing Order, what should I do?
This is without question the one part of the process we know could cause problems as Standing Orders are set to send a fixed monthly rate, with prices likely to be adjusted due to VAT changes.

If payment to us is made for a smaller value than is due, our systems will hold any invoices open until the debit has been allocated against your account. However, ideally customers who make payments via this method should review any changes as a result of invoices raised from 1st Janaury 2011 and await any adjustments that maybe needed going forward.


Will this policy cover all products and services?
Yes, where VAT is applicable (not all of our prices are affected by VAT), we will pass on the adjustments of the increase from 4th January 2011.


Should I pay a bill that I've already received?
Yes, please pay any invoice you already have in full as this will have been generated at the old VAT rate of 17.5% which we have produced in accordance VAT rules prior to Janauary 4th 2011

If we produced the invoice after 4th Janauary 2011 it will have been calculated at the new VAT rate (except for services that were provided to you before the rate change).


Can I work out the new amount and increase my payment to you?
No, calculating VAT is very complex. In the case of a Aquiss invoices, we can't just make a percentage reduction because VAT may not be charged on some parts of the bill.


Will business customers pay the new VAT rate?
Most business customers will not be significantly affected by the rate change as they can reclaim their VAT charges. However, there are businesses (not registered for VAT and charities) that will need to budget for the announced increase.