Is the VAT reduction being passed on?

[Bookworm]

Got an e-mail from Ann Summers this morning, and they are passing it on, so anyone wants to go nuts for xmas on saucy stuff, there's your chance! ;-)

[installspark]

Costco and Asda are charging the new VAT rate at the till. Shelf edge labels are still showing the old VAT rate inclusive prices.

 

The Littlewoods group and JD Williams group are also passing on the new rate.

[gyzmo]

Costco and Asda are charging the new VAT rate at the till. Shelf edge labels are still showing the old VAT rate inclusive prices.

 

The Littlewoods group and JD Williams group are also passing on the new rate.

 

 

This is how JDW are "passing it on" - a banner on their websites:

 

"New VAT savings available now! To claim quote HLKK5 at the checkout".

 

Err - JDW - its not a special offer you know!

[adamski]

What gets me is that when a law is passed the man in the street respects and abides by it and is punished suitably if they flout it example the smoking ban, but companies, banks shops etc etc just carry on as normal with no comebqack or punishment, thats why we are in the state we are in now, its almost like corporate anarchy!

Edited December 3, 2008 by adamski

[Rippedoff2008]

I'm passing it on, not that it makes much of a difference (£35 avg sale now £34.26) but I dont want to pay more than I have to and dont see why my customers should!

 

VAT flat rates are going down too. Petrol retailers are currently 10% flat rate to HMRC and they'll go down to 9% so they'll still be all right!

[TUTTSI]

Orange mobiles sent me a text to say the VAT will be reduced from 1st Dec08.

[gyzmo]

I'm sorta hopin Three doesn't - then I can cancel with 30 days!

[sergedlm]

Orange have said they will pass it on in January

[ATD]

I've had a slight issue with Argos. Their website is adjusting prices to account for the new VAT rate. However I reserved an item late on Tuesday night for collection at store on the Wednesday. The Quickpay thing in store actually charged the old VAT rate.

 

I would suggest anyone reserving items online, actually takes the confirmation email, showing the correct prices, to the store in case of any problems - I only took the reservation number, so had to go back today with "proof" of the correct price.

 

To be fair, when I proved it to the staff, they refunded the difference straight away - but interestingly the store till was still coming up with the price including VAT at the old rate.

[s77urf]

i recon no!

i bought two ink refills from my local pc shop last week for £6.99 each, i buy 3 or 4 per month! i checked what i paid for them previously and found that i also paid £6.99 each way back as far as March 2008, when i visted today i was told that thier "system" was updated on 1/12/2008 and that my purchase item had been reduced acordingly and that the item purchased had actually gone up!?

[Bookworm]

Reserved items online at Argos, showing VAT difference. Went to pay, a £70 item didn't come up, so I asked the cashier, she got her manager. Turns out every single item has to be re-keyed in manually with the new rate, which takes time. Anyway, it was very busy, the refund would have been under £1, the manager said: "Tell you what, I'll make you an offer you can't refuse, how about a £5 gift card instead?" which of course I accepted! Result! ;-)

 

Name and shame: Wetherspoons pubs (on the food, didn't check on the drinks). The receipt shows 15% VAT, but you're still getting charged the same total price.

[flyingdoc]

2 thoughts spring to mind.

 

1 this is a moronic tax cut that is going to cost more money to small to medium businesses and will not benefit them in the slightest. In case Mr DARLING hadnt noticed BUSINESSES CLAIM VAT BACK!!!! so this makes not a whit of difference other than costing them in reprinting stationery and reprogramming computers to reflect the new vat rate.

AND doing it in the middle of a VAT quarter is going to make sorting the books out less than a breeze also.

 

the second thing is ....

 

BOOKWORM is on the Ann Summers mailing list???????????

[Bookworm]

Yep. And LoveHoney's. ;-)

[Thailand]

Hampsons are passing it on in thier own little way (and using it as a promotion tool).

 

If you buy a sausage or a bacon butty @ £1.50 you now recieve a 'Gordon Brown Sauce' absolutely free!!.

 

They cost a penny right? methinks even though some would have paid the 5p, overall I'd say they were keeping most of it.

 

Tittle-tattle over pennies, but hey 'Gordon Brown Sauce'

[patdavies]

Thames Valley Police, via Drivetech - who run their speed awareness courses are NOT passing on the VAT rate cut.

[thecteam]

The Range aint passing it on, Manager said he don't have to as it isn't Law. i asked if i could have this in writing to which i got no reply. then a few others started on him and well he just walked off.

saying well poundland ain't doing it. what has Poundland got to do with me asking for the vat to be corrected in his shop. i wasn't buying anything from them i was buying it from The Range.

 

so who do we report them to. the taxman. the PM the house of lords. surely they have a body setup to do with this sort of thing.

 

or is it another one that has to be dealt with by the OFT.

 

i know its a much of a muchness, when you brake it down. but why should big companies get it when it is meant for everyone.

 

the meek shall inherit the earth.

[pompeyfaith]

May only be pence and pounds to us but if these companies did this to every customer they would make quite a few millions.

[buzby]

'Report them' ? To whom and for what?

 

They have done nothing wrong - apart from show a complete disregard for their customers, so for that alone, you'd be best advised not to patronise them. If they continued to charge VAT incorrectly (at 17.5%) then what they are doing would be certainly illegal... but they're not.

 

They will have reduced VAT to 15%, then upped their own pricing by 2.5% to take up the slack and keep the price the same. Fair? Of course not - but then, they are allowed to set their own pricing.

[flyingdoc]

Sadly buzby is right - as long as they collect and pass on VAT at the requisite rate, changing their price points is their own business and you can do nothing about it whether they pass it on or not.

[TUTTSI]

The Range aint passing it on, Manager said he don't have to as it isn't Law. i asked if i could have this in writing to which i got no reply. then a few others started on him and well he just walked off.

saying well poundland ain't doing it. what has Poundland got to do with me asking for the vat to be corrected in his shop. i wasn't buying anything from them i was buying it from The Range.

 

so who do we report them to. the taxman. the PM the house of lords. surely they have a body setup to do with this sort of thing.

 

or is it another one that has to be dealt with by the OFT.

 

i know its a much of a muchness, when you brake it down. but why should big companies get it when it is meant for everyone.

 

the meek shall inherit the earth.

 

IMHO -You should report them to the Inland Revenue -Customs and Excise

the rate is NOW with effect from 1/12/08 = 15% they cannot charge 17.5%.

[flyingdoc]

The problem is they are not charging 17.5% they are charging 15%.

 

lets say the price used to be £1.17.5 pence for an item, ( for ease of mathematics) they kept £1 and sent 17.5p to the vat man.

 

Now when they charge 1.17.5 they are charging you the same - ALTERING THE INVOICE TO SHOW VAT AT THE CORRECT RATE of 15% and keeping about 1.02.

 

The VAT man doesnt care - they are not breaking any laws - they are charging 15 % and paying over 15%. The fact is they are just not reducing their prices.

[Johncena]

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.

[legalpickle]

IMHO -You should report them to the Inland Revenue -Customs and Excise

the rate is NOW with effect from 1/12/08 = 15% they cannot charge 17.5%.

Wrong to point 1: If they clearly charge 17.5% - and this is shown as such on the receipt, not shown as 15% and price amended to be slightly higher to cover the 2.5% discount, as some are doing - then you should report them to HM Revenue & Customs. The Inland Revenue and Customs & Excise don't exist for several years now!

[patdavies]

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.

 

Which is correct. The 2.5% reduction is in the rate of VAT; not the pre-tax price nor the overall price.

 

For example.

 

If an item costs £100

 

At the old rate, VAT would be £17.50. This gives an overall price of £117.50

 

At the new rate, the VAT is now £15. This gives an overall price of £115.00

 

 

This gives an overall price difference of £2.50; which as a percentage of the old overall price is 2.13%

[gyzmo]

Sorry if I've already said this, but watch out for sales where the new price is at the new VAT rate and the WAS price is on the old VAT. I'll bet my granny's last wish that the sale discount does not add up!