LS FORCES UK MERCHANTS TO BREAK UK LAW
As of February 7th Lightspeed are now making all UK merchants that aren't VAT registered break UK VAT law.
BREXIT HAS CHANGED BUGGER ALL FOR UK DOMESTIC SALES
After this update has been applied - We now support the post-Brexit UK VAT rules. Any order at or below £135 GBP will be automatically taxed 20%.
All UK sales levy VAT on them for orders under £135 and this is breaking UK Law for companies that aren't VAT registered.
Lightspeed can be ignorant and oblivious to international processes/law at the best of times now it has just gone way too far!
Legally, you’re not permitted to charge VAT to customers before you’ve registered for VAT. Paragraph 2 from Schedule 41 of the Finance Act in 2008 states that the penalty for charging VAT when not registered can be up to 100% of the VAT on the invoice.
This has been happening for over 2 weeks now! It is not acceptable for this to go on for any more than 1 day wtf has this not been fixed yet????????
Lightspeed are you going to be compensating UK based merchants for the loss of sales and high cart abandonment during this period and also the time it takes to refund every customer that has been charged VAT?
This is the most serious issue to date and find it really really hard to understand why the LS engineers would put this feature live in full knowledge of what this would do to UK domestic sales.
To clarify something it seems lightspeed does not fully understand:
The UK consists of 4 countries that all operate with the same Retail/distance selling tax law.
ENGLAND - SCOTLAND - WALES - NORTHERN IRELAND
If someone places an order in the region or county Leicestershire (that is in England) They would not pay VAT if the merchant is not VAT registered. Similarly, if someone purchased goods from Pembrokeshire ( that is in Wales) again they would not pay VAT if the seller is not VAT registered.