In todays pre-budget report the Chancellor introduced a reduction in VAT rate from 17.5% to 15% to help kick start the economy and increase consumer spending.

VAT has been set at 17.5% since before ecommerce was invented and this latest change is going to cause a huge headache for ecommerce websites.

Some systems are likely to have VAT hard coded into the ecommerce systems but even advanced programs will still need to be adjusted to reflect the new rates.

A number of retailers without a retained website development company will be unlucky enough to have the VAT rate hard-coded into their CMS. This makes price changes before next Monday almost impossible.

Read more about VAT reduction will it cost more than it saves

Comments (0) Nov 27 2008