VAT is a European and hence British tax on goods sold. The present rate of VAT is 20% on top of the price charged. Thus any business registered fort VAT should charge you the product price and an additional 20% if you area UK or European customer. This VAT charge does not apply to rule books at all.
If Peter Pig raised prices by 20% a basic pack costing £2.60 would increase to £3. We feel that at £3 customers would find the price too high and thus Peter Pig would go "bust" for lack of customers. Most of our competitors use cheaper metals (PP uses 90% tin mix) or are not themselves VAT registered, thus reducing their costs.
Therefore our policy at the moment will be to pay the VAT on behalf of UK/EU customers as many UK car dealers do, in order to retain our customers. This obviously helps those customers who are in the UK/EU.
Now, just in case you feel that we are taking advantage of the long suffering customer (some will be convinced that we are creating huge profits!) we would point out that our sculptor (Martin) gets no payment from the company. Peter Pig usually make a net profit of a couple of thousand pounds in a year. Thus Peter pig products get to you at about cost price. Metal prices have also gone sky high due to world demand for TIN.
One resolution to our VAT problem would be if all the other wargames companies in the UK and Europe were forced to register for VAT. At the moment you have to turnover about £75,000 per year to be forced into VAT registration. Thus smaller companies do not pay VAT. The other resolution would be that wargamers were satisfied that £3 a pack is a reasonable price for 15mm figures. Let us know.
So, basically business as usual into year 25 of Peter Pig.
Martin at PP HQ