You know sometimes there is a tiem in business when your turnover hits that magical value (or actually you have forecast it to reach that number) and you now have to register for VAT.
Two things - it adds additional administartion; however the main impact may be on customers. What happens if they are not VAT registered.
They are about to see a 20% hike in prices. Thats a tough one.
What can you do... fisrtly explain. Make them aware of why you are doing it and that it is not a choice. It is a legal requirement.
Secondly I think you need to hold your ground and charge the VAT, its difficult and you may lose some clients, however how many businesses can afford a 20% reduction in sales value.
Sell the service you offer and that most competitors would becharging it also.