Today, the standard VAT rate has been reduced from 17.5% to 15%. We have received lots of smaller plastic card orders this morning (500 and less cards) from end users.

The 2.5% saving on VAT only affects (to their advantage) our non VAT registered customers who cannot claim the VAT back. For everyone who is VAT registered, it is simply a paperwork exercise.

Actually, to a far lesser degree, it does give us a small (very small) saving on credit card terminal processing charges, as each order we process now will be 2.5% smaller, so our credit card terminal provider will charge us a handling percentage on a smaller figure.

Feels good that it costs us less money to be an unpaid VAT collector!

Some plastic card examples