Who is passing on the VAT Rate Cut? A "Name and Shame" Thread

ibcwood@dunelm.org.uk

Magellan's, "The World's Most Trusted Source of Travel Supplies" are not passing on the VAT reduction. They say "Sorry for this inconvenience"!

JimmyTheWig

JimmyTheWig wrote: »

How does this affect PAYG customers? If a 10p text currently costs 8.51p+VAT, with 15% VAT that will make it 9.79p - is that what they're going to charge us? Or give us a bonus when we top up with £10? Or will £10 top-up cost us £9.79 in the shop?

Yay! Just had a text from O2...

From 1st Dec the VAT rate is changing so we're passing this benefit onto you. We'll add an extra 22p for every £10 you top up."

So they _are_ giving the cut to PAYG customers.

student100

Amazon say they're passing on the cut, but they're not on everything.

I bought an item last week which was priced £299.20. I used their "LOWERVAT" special offer so I got it for £292.something.

Looking today, they say they've applied the new VAT rate to this item, but lo and behold it's still £299.20.

On Saturday I ordered some CD-Rs which were £9.99, and I saved 21p (!) using the LOWERVAT offer. Today these CD-Rs are still priced £9.99...

Glad I used the LOWERVAT promotion when I could!

Gricer

student100 wrote: »

Amazon say they're passing on the cut, but they're not on everything.

I bought an item last week which was priced £299.20. I used their "LOWERVAT" special offer so I got it for £292.something.

Looking today, they say they've applied the new VAT rate to this item, but lo and behold it's still £299.20.

On Saturday I ordered some CD-Rs which were £9.99, and I saved 21p (!) using the LOWERVAT offer. Today these CD-Rs are still priced £9.99...

Glad I used the LOWERVAT promotion when I could!

Have Amazon actually passed on the VAT reduction on anything? (except for the weekend LOWERVAT promotion mentioned above).

I have 15 items of photographic stuff on my Amazon wishlist ranging in price from £14.99 to over £1000 and not one of them is any cheaper now than it has been for the last few weeks. In fact one of them (a Canon 50D camera kit) has increased from £1104.94 to £1214.69 since the weekend.

EcomInsider

Just been pestering Ted Baker customer service about putting UP their prices! I noticed a shirt I had my eye on was £78.50 last night but £80 this morning! I emailed to say I expected prices to go down what with the VAT rate changing not go up, and I got this reply:

"Please note that the VAT reduction is a optional discount for companys"

They have however given me a promotion code for 20% off - which they claim is what they are doing instead of reducing the VAT. Its TB-XMAS (valid from today until midnight 14th Decemeber) which I will also post in the coupons section.

blue_monkey_2

No-one has to pass on the rate cut, it is not mandatory. If you do not like a companies policies then go elsewhere. I guess some will that are financially able to do so will make the cut, but remember, not everyone is going to be able to do so and their 'pocketing the difference' might mean people keep their jobs. Which is a good thing.

Just shop the same as you did before and buy from the cheapest places and instead of moaning about whether or not the cut has been made or from places like Amazon/Tesco Jersey that are VAT free anyway.

I for one am not that bothered as my shopping habits will remain the same regardless. I never shopped at the big places like M&S and John Lewis as they are too expensive anyway.

Gricer

blue_monkey wrote: »

No-one has to pass on the rate cut, it is not mandatory. If you do not like a companies policies then go elsewhere. I guess some will that are financially able to do so will make the cut, but remember, not everyone is going to be able to do so and their 'pocketing the difference' might mean people keep their jobs. Which is a good thing.

This may be so, and if the company says that is it's policy then fair enough, but surely the point here is that Amazon are claiming to have passed on the VAT reduction when they quite clearly haven't. Not on anything I've been looking at, anyway.

Andew_Hove

This is all very interesting.
All a retailer needs to do is open its computer system and change 17.5% to 15.0%. Then type a notice saying until a set date the new price will be charged at the till/ checkout. For a company to say on the one hand it will cost to much to change a Direct Debit (this changes every month anyway and the computer asks the bank for the amount so no additional cost here) then say they will increase all the other costs to talk account of VAT is a smoke screen, They are hoping that most customers will not worry about a few pence, but a few pence soon adds up when you have a few 100,000 customers! PLUS had VAT gone UP, they would have soon changed it.

I will NOT shop with any retailer who is not giving the reduction, no matter how small.

Rant over! J

nakmeister

Bella Italia have passed on the VAT rate cut. They've not changed their menu but put a sticker on it saying the VAT cut will be applied at the till - it was. So on our tea yesterday, we saved about 80p!

Mabe

This is the link to the HMRC guidelines for business which might help. In section 3 states there is an 'optional change' for deposits for goods/services to be received after 1st December, 2008. So again it's probably up to the individually company involved.

http://www.hmrc.gov.uk/pbr2008/vat-guide-det.pdf