Why hello there!
This is a dull boring financial one but is actually good news for you all.
Countess Ablaze Ltd will be VAT registered from June 1st 2016, as it is the first day of my company's financial year. No more manipulating stock levels to avoid the threshold, which is admittedly very generous in the UK. I've been skirting the threshold for three years but now I'm in the studio, I'm struggling to stay under it.
But what does this mean for you?
If you're in the UK and the EU, nothing, nada. Business as usual, crack on. The only thing that you'll see differently is that when you reach checkout, you'll see your VAT breakdown and your receipt will reflect that. No price increases, nothing. Even postage costs are the same. I've been preparing for this change for the past year and wanted to do it in a way that doesn't slap 20% on top of the current prices, which is why price adjustments were done slowly over the past months.
If you're everywhere else in the world, you won't pay VAT as VAT is a EU tax. This means you'll pay 20% less than us EU Europeans, you lucky devils. However it does mean that I'll need to rethink the flat rate postage on these orders. Non-EU European countries will also fall under this bracket from June 1st. Currently international orders pay a flat rate of £5.50. So it doesn't hurt my profit margins, I'll be switching international orders to a tiered system which reflects the actual cost of airmail more closely.
|Up to 250 grams||£5.50|
|Up to 500 grams||£8.00|
|Over 500 grams||£11.00|
What does it mean for me?
I can claim my VAT back so my profit margins are not dented too much, a slight increase in paperwork and the anxiety of being beholden to the VAT man. It also means I'm professional enough to countersign passports, which as a child I thought only proper grown ups did. (Don't actually ask me to countersign your passport...)
There's not a great deal in the website right now - purposefully - so I do apologise. I'm about to embark upon the annual massive stock take and I need to overhaul the website to make sure that I have everything VAT compliant and the new postage for international orders set up. Come this weekend, the online shop will be empty whilst I do all this.
I am aiming that Clubs will be open for sign ups on June 1st and I'm aiming for a shop update on June 2nd. Please bear with me in getting everything set up correctly as I can see from my to-do list that it's a big task.
Thank you all very, very much for your wondrous support in getting Countess Ablaze to this point.