All invoices issued today (Monday 1 December 2008) will be charged at the new VAT rate of 15% instead of the old rate of 17.5% giving our customers a total saving of a fantastic, unprecedented, unimaginable, generous, overhyped 2.5% !. In fact the actual saving is a bit less – concentrate carefully:
Old rate 17.5%:
Net total: £100.00
VAT @ 17.5 = £17.50
Toatal: = £117.50
New VAT rate 15%:
Net total: £100.00
VAT @ 17.5 = £15.00
Toatal: = £115.00
Total (post VAT saving) = £2.50
which is only 2.13% of the old total of £117.5 (try it on your calculator: 100*2.5/117.5
Tags: Calculator, Invoices, Vat Rate