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Following the great news that VAT is being reduced from 17½% to 15% announced in the Pre Budget Report, Grange Pet Centre is pleased to advise that this reduction will be passed onto our customers as from Monday 1st December 2008.
This will be achieved by deducting 2.13% from all products. You will see this discount as "VAT Reduction" at the end of the checkout process.
We have been asked why this is 2.13% and not 2.5%. The answer is best explained in the following example:
An item which sells for £117.50 has a price excluding VAT @ 17.5% of £100.00
If you apply the new VAT rate of 15% to the price excluding VAT (£100.00), it gives the new price of £115.00
The new VAT rate equates to a saving of £2.50 (£117.50 - £115.00 = £2.50)
This equals the same as taking 2.13% (or £2.50) off the original £117.50 price.
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