Press1 Blog 
 

VAT change annoucement

From 1st of Dec 2008 VAT has increased from 21% to 21.5% for press1.co.uk customers.

With the global economic slow down governments are taking different approaches to stimulating market activity. While the UK announces a drop in VAT to 15%, Ireland ups the rate to 21.5% (from 21%) – go figure!. For those press1 customers who are VAT registered in the UK there will be no change (still 0% VAT),  for those paying VAT all charges will increase by 0.5%, this includes rates for call forwarding (of course forwarding to UK landlines is still FREE).

Why are you charging 21.5% VAT ?
21.5% is the new Irish VAT rate where press1 HQ is based.
There are special rules for telecommunications, broadcasting and electronically supplied services.
In the case of business to consumer services are taxable at the place where the supplier is established.
In the case of supply to UK VAT registered businesses no VAT is charged.