VAT Changes Mean Extra Administrative Work In Advance Of January 1st.

By now retailers are aware that newspapers will be changing their VAT status from 9% VAT to 0% on January 1st.
What this means for retailers that scan the products is that each title will have a different barcode applied to each edition.
We have been supplied with the new barcodes and will make them available presently.
It is the intention of each of the publishers to continue to use the same RSP cover price after the VAT has been removed.
In all instances, the wholesale prices will be increased to enable the publishers recoup “their” VAT.
This increase may lead to some retailers migrating from one Carriage Charge Band upwards to another if and when the distributors change the rates. It is therefore only fair that all news retailers will be able to avail of “their “element of the VAT , effectively increasing the cash margin earned, while continuing to enjoy the existing agreed percentage Terms.
Naturally, as you are all aware, the determination of the retail Selling price is a matter for each individual retailer.