Is the VAT reduction being passed on?

[BankFodder]

Well?

[abonae]

Well?

 

I'd have to say that the question is: why on earth would it? Prices to consumers are set post-vat to hit so-called consumer price-points (1.99, 1.49 etc), to show undercutting of a competitor, or to match the "norm" e.g. petrol.

 

Even in the large retaillers who are "setting an example" I don't expect them to stay off price-point for very long.

 

Abo

[BankFodder]

BBC NEWS | Business | Lower VAT rate comes into force

[Gez]

My company has passed on the cut. However, this actually comes at a cost because things like brochures & pricelists must now be thrown in the bin and reprinted, great for the environment, ask argos how many they've thrown out!! For some larger suppliers the re-print will need to be done on a smaller scale because the cut is temporary.

[borisbeaver]

I work for the NHS in the South West in IT and one of the roles is the management of the Purchasing system. We have just implements the change in VAT rate to ensure thae orders placed today quote the correct rate.

[gyzmo]

Wilksinsons and Tescos are passing it on. They're deducting the amount at the till.

[S Ward & Co]

just about to call betta living as have a kitchen being delivered on monday. altho initially they say the invoice already done..

[buzby]

Not if they can get away with it...

 

http://www.consumeractiongroup.co.uk/forum/general-consumer-issues/171160-vat-rip-offs-start.html#post1847032

[Guest symbio-dek]

The question should be - what is our corrupt governments angle on this supposed gesture . . . they're all fanny merchants, who only change the rules to suit themselves . . .

 

And no, i dont think it'll be passed on - it'll just be more disguised, slight of hand, christmas-cracker psychological governmental twoddle . . .

 

Big smiles . . .

Edited December 1, 2008 by symbio-dek
my poo spellin again - lol

[Dangermouse]

My local Shell petrol station is charging 90.9p per litre today (The recipt shows vat at 15%)

 

I also paid 90.9p last week.

 

Dangermouse

[BankFodder]

just about to call betta living as have a kitchen being delivered on monday. altho initially they say the invoice already done..

I heard on Radio 4 today that if your goods are not yet delivered then they are capable of coming under the new VAT rate

[Gez]

I like quotes like this:

The Treasury said that the cheaper products are part of a package of measures which, taken together, should boost the economy.

 

Part of a package.. That's quite a commonly used term these days isn't it. This is always a nice way of saying "if this turns out to be a turd, we can say its part of a package, not a plan in itself". Then just hope to god that some of the other parts of the 'package' actually work..

[Guest symbio-dek]

The other part of the 'package' is that which is going into their back pockets and 'retirement country manor' accounts . . .

[borisbeaver]

IIRC, VAT is applied at the point of invoice.

[westendwendy]

My local Shell petrol station is charging 90.9p per litre today (The recipt shows vat at 15%)

 

I also paid 90.9p last week.

 

Dangermouse

 

Excise duty has been raised by 2% on fuel,tobacco and alcohol and this will all but cancel out any vat reduction,you may well see a price rise in the next few days.

 

There's always a bit that they don't tell you.

[buzby]

I heard on Radio 4 today that if your goods are not yet delivered then they are capable of coming under the new VAT rate

 

And just as equally NOT. The final arbiter is the 'tax point' used on the invoice. If the invoice is date BEFORE 1/12/08 then the original VAT rate applies, irrespective of the subsequent reduction.

[buzby]

Excise duty has been raised by 2 on fuel,tobacco and alcohol and this will all but cancel out any vat reduction,you may well see a price rise in the next few days.

 

Nope - it's been increased by 6%

 

 

There was a major complaint from the Scottish Whisky Distillers at the hike in alcohol duty.... Mr Darling did a u-turn and Scotch Whisky is now exempt from the 6 increase. They're just making this up as they go along.

[Surfer01]

I don't think any company is obliged to reduce their prices although they have to reduce the VAT.

If GB and his crony clown Darling really wanted to kick start the economy, they should have reduced council tax and duty paid on fuel. That way the majority of us would have felt the difference.

As we hardly ever buy big items, the 2.5% is not going to make any difference to us especially as I have been made redundant!

[Splenius]

What about direct debits? I have one for Fitness First. If they decide NOT to pass on the VAT reduction, must they write to me and tell me their prices have gone up? (even though the amount of the direct debit does not change). Fitness First customer services say that they "don't know yet". There is apparently a directors meeting tonight (1st December), where they will decide.

[Bookworm]

Re: Is the VAT reduction being passed on?

Who cares? What is it going to achieve? Who really believes it will get people spending? If you don't have money in the first place, how is a 2.5% reduction in VAT going to make any difference? If I can't afford an item worth £100, the fact that it may cost me now £97.50 (if my math's right, no guarantees there ) is not going to get me to the shops.

 

For goodness sake, I can't be the only one who thinks that even a 10% discount is barely worth the trouble, so 2.5%? I'd spend more than that on the fuel to get me there!

[westendwendy]

Nope - it's been increased by 6%

 

 

There was a major complaint from the Scottish Whisky Distillers at the hike in alcohol duty.... Mr Darling did a u-turn and Scotch Whisky is now exempt from the 6 increase. They're just making this up as they go along.

 

Maybe I'm just a mushroom and am being fed you know what from our Head Office.

I work in the oil industry and was told 2% today when I queried that alcohol and cigs hadn't changed while the rest of the goods had.

 

I'll recheck when the new prices are sent to us.

[pompeyfaith]

Peacocks retail are not passing it on in the stores although on there website it says online and retail stores will pass it on.

 

I was in peacocks this morning and spent £186 on presents and got charged 17.5% so i questioned it and the girl said sorry we have not got the new prices download yet so there was nothing she could do.

 

So i said can i have your head office address so i can claim it from there to which she said hang on ill void this transaction and start again taking 2.5% of each item.

 

Got home to find out on the receipt that she took off 2.13 % some 0.37% less.

 

So i now wonder how much peacocks have made out of that today as a group because i bet not everyone will question it.

 

Have sent an email to peacocks asking if they could explain them self's will let you now how it goes.

 

Regards

 

Pompeyfaith

[Helford]

Hi Pompeyfaith,

 

Whilst their initial non compliance was unacceptable, I have to say that there subsequent action is correct at 2.13%

 

To clarify, if you bought £100.00 of goods before with VAT at 17.5% (£17.50), the total cost is £117.50.

 

Under the new rule, £100.00 of goods attracts VAT at 15% (£15.00), the total cost is £115.00

 

The difference between the two calculations is minus 2.13% (£2.50) on the £117.50 (incorrect) figure.

 

Sorry to be 'know it all'!

 

It's the same as take a sum (Say £10.00) add 10% (£1.00) discount 10% (£1.10) its NOT the same as original starting figure of £10.00, but £9.90.

 

Don't you just love maths!

[pompeyfaith]

Ok well thanks for clarifying that part but im still annoyed that they where not forthcoming and that i had to ask which embarrased my wife somewhat plus as i said as a group how much did they make out of this today.

[PGH7447]

Debenhams are refusing to pass on the VAT

 

Debenhams won't pass VAT cut to shoppers, will pocket profits until next week | Mail Online