VAT rates in the UK will revert to 17.5% at the beginning of 2010. This will happen automatically, so you don’t have to do anything in your package to have this change reflected. Click here to find out more about pricing your content.
The UK government is increasing the VAT rate from 15% to 17.5% on the 1st January 2010. As you know, content and services sold on mobile in the European Union are liable to tax at the UK VAT rate, which the Bango Payment system automatically takes care of for you.
With the new VAT rate a typical transaction of £3.00, will equate to revenue of £2.55 plus 45p VAT calculated at 17.5% (before billing costs).
We will automatically calculate this into your revenue share payouts as soon as the VAT change takes effect.
Your pricing may be affected, so check that your prices still adhere to the operator-specific prices points. You do not need to take any action to keep your existing price point – the Bango Payment system will automatically deduct VAT at the new rate from the start of January 2010.