As of March 22nd 2013, Posh Yarn is VAT registered, so if you live in the UK or EU, you will be paying 20% VAT on your purchase (and on postage fees). We are not prepared to put all our prices up by 20% – that is too steep an increase in the financial times are living in. But unfortunately, neither can we absorb a 20% loss, and still remain a profitable business. We are going to compromise by putting up our yarn prices by 10%. You will see our new prices for each yarn base on our website, under Information.

Our prices are now listed excluding VAT and including VAT. If you are in the UK or EU, you will pay the inclusive price, if you are outside the EU, you will pay the exclusive price. VAT will not be charged on a gift voucher purchase, but if you are in the UK or EU, you would automatically be charged VAT when you redeem your gift voucher. Because VAT due is calculated on the location we post the goods to, it is really important that you put the actual address that you want the parcel delivered to, on checkout. We will not be able to send the yarn to a different country, once you have proceeded through checkout and made your selection. This is especially worthy of note for any personal shoppers. It’s okay to change the address with us afterwards, as long as you select the correct country when going through checkout.

If you live outside the EU, the VAT will be automatically deducted as you go through checkout. Because you will be paying 20% less for the yarn, we are raising your postage fees a little bit, just to cover the actual cost of posting your yarn. The new postage prices I announced originally were not quite enough for international parcels, and that was okay when we were making more profit on the yarn, but now we need to make sure your postage costs cover the cost of posting the yarn. So, the UK & EU postage will remain the same figures as I already announced, (£3.25 and £4.25 respectively, **including VAT**), but the international postage will be £6.25. The new postage rates and yarn prices are effective immediately.

With regard to our next shop update, we will go back to our originally announced plan, of the Sweater Update on Sunday March 31st 2013, and the leftovers and Orphan Update on Monday April 1st 2013. The postage rate for the Sweater Packs is usually a little higher than our regular postage rates, but we have decided to simply apply the new postage rates to this update. If you buy in the Sweater Pack update, and then again in the Orphans Update, you will still need to pay postage for each update, as we will not be combining orders from these two updates.

I hope that all makes sense; if you have any questions, please feel free to email me or send me a private message on Ravelry.

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