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Discussion Starter · #1 ·
The government removed it, but most of the prices on my 'to read' list have stayed the same since March.

Is someone just pocketing it now?  ;D

Not claiming to completely understand how VAT was supposed to work, but the book prices have not dropped as Amazon claimed they would.
 

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You can reduce your .99p books to .77p now, lol.
 

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Connor S Caple said:
The government removed it, but most of the prices on my 'to read' list have stayed the same since March.

Is someone just pocketing it now? ;D

Not claiming to completely understand how VAT was supposed to work, but the book prices have not dropped as Amazon claimed they would.
book prices on Amazon UK were already too low, it isn't rational to ask us to drop them lower because an unfair tax was FINALLY removed

you do understand we don't get back all that money taxed away from our books sold in the UK over many years?
 

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Discussion Starter · #4 ·
Nobody asked any of you to reduce book prices - the question was:

What has happened to the 20% VAT?

Has Amazon increased the amount they give to authors, kept it for themselves, split it with the authors, donated it to charity, what?
 

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Connor S Caple said:
Nobody asked any of you to reduce book prices - the question was:

What has happened to the 20% VAT?

Has Amazon increased the amount they give to authors, kept it for themselves, split it with the authors, donated it to charity, what?
My understanding is that the agreement with Amazon is 35% royalty. When the books were priced at 0.99 USD, they appeared in the UK store as 0.99 GBP which was approximately 0.77 GBP + VAT.

So we were earning 35% of 0.77 GBP = 0.27 GBP approx (subject to xch rate).

Now, if you leave your price set to 0.99 GBP, you will earn 35% of 0.99 GBP = 0.35 GBP approx (subject to xch rate).

Alternatively, you can now adjust your price down to the new minimum and still continue earn what you did before, if you prefer.

Note: Changed currency symbols to USD & GBP as forum does not seem to like them :eek:
 

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Discussion Starter · #6 ·
Thank you. I never understood the VAT thing. That makes a lot more sense.

It never occurred to me that I was paying the VAT from my profits, as was Amazon. I really used to think it was coming out of their 30%.

That's why I'm a writer, not an accountant.  ;D
 
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