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VAT, January price increases, etc.

Elizabeth Ward

Well, this quarter is always the best of the year and in the past week I have gone over the VAT threshold (I mean for the year, no I haven't turned over 85k this week!).  I am required BY LAW to register for VAT within 30 days of this happening.  That is immediately after Christmas.  As soon as the Christmas bank holidays are over, that is it, VAT registration applies and I am required BY LAW to charge VAT on everything that is not sent outside the EU.

This means price increases, but they will not be the same across the board.  Right now, I have to pay VAT on everything that comes to me through a wholesaler or through the EU unless the person selling to me is also below the VAT threshold, or from outside the EU.  That means that I do pay VAT on everything except the Professional European collection.  However I only pay VAT on what the instruments cost me, not on my profit margin (which is a lot lower than people seem to think!) so there will be some increase.

In the case of Gliga, I am expecting a significant price rise in January anyway.  Their prices are likely to go up and some of the instruments, particularly cellos and basses, are already being sold at incredibly low margins (basses usually at cost! - the question of why people still won't buy them is a very good one!).  Other retailers will follow I am sure, the other UK Gliga sellers all seem to follow my pricing.

The European single maker collection is currently completely free of VAT because the maker is too small to have to charge it.  Those prices therefore will go up by 20% the day I register for VAT.  If you want one, it would be a very good idea to order and pay for it before then!

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