VAT Changes and Ecommerce Systems

So the Government has decided to decrease VAT to 15% in a bid to stimulate the economy and in turn help businesses...

Am I the only one of the opinion that in the short term (and lets face it, these measures were implemented with the short term in mind) this change will actually cause even more problems for smaller business running online stores?

Why is this? Well many ecommerce stores (especially older ones) have the VAT rate fixed in the system - so now the Government has effectively given these business less than a week to get this technical issue sorted. This means they have to get in touch with their web developers and potentially spend a lot of money sorting this out! The only winner in this scenario is the web developer and even then, with lots of clients suddenly needing a big change without time to book it in, headaches will abound in the next week.

Why was the cost and inconvenience of this change not taken into consideration? The main difference between VAT and other forms of tax is that it relies on the VAT registered business collecting the tax from the customer on the Government's behalf. A simple 2.5% change will require all sorts of manual and automated systems being changed - and for many small business already up to their eyes in bureaucracy this is just one more thing they could do without - at potentially their busiest time of year.

To make this worse it all changes back again in 13 months time!! So we have to undo what we have just done.

I hope, along with pretty much other one else, that these new tax cuts stimulate the economy, but what a pain in the backside this will be for many in the meantime!!