Dixons 'automatic' VAT reduction - a warning

o_t_e

Anyone using discount codes on the Dixons website should be aware that using a discount code seems to remove the VAT reduction from the final price.

eg I ordered a humax pvr - the price after the VAT reduction was £101.31. Applying the SAVE5 discount code should have brought the price down to £96.31 plus delivery.

However the price shown is £98.51 plus delivery - the £2.20 VAT reduction has been removed in the final price.

To date I've not had a satisfactory response from Dixons to my enquiry about this so it might be worth putting off any Dixons purchases until they can sort this out.

cashkeeper

I noticed this on the site so I went to our local store, no probs with their tills and no-one else in the store - so got served very quickly !

minimadtrix

Does this help answer your question - I found it on the Dixons website but can't get my head round it:-

How does this affect you?

All the prices currently displayed in store & online include VAT at 17.5%. However these prices will be discounted at the checkout both in-store & online to be equivalent to the new 15% VAT prices. This means a discount of 2.13% on the displayed price.
Why is this discount 2.13% and not 2.5%?

The example below illustrates how the 2.13% discount is calculated:
Current ticket price includes VAT at 17.5%
On a product that sells for £100 the EX VAT price is £85.11
To calculate the new price including EX VAT at 15% we must add 15% to the EX VAT price of £85.11, which equals £97.87.

Please note for online purchases only the product price will be discounted at the checkout. Our delivery charges have already been amended to reflect the revised VAT rates. E-Top up purchases including iTunes cards are excluded from this offer. For collect at store orders, discount will be applied in-store when you make your purchase.

o_t_e

Yeah I'm aware of that; I've got screen prints to show a VAT reduction of £2.20 was applied to get the price down to £101.31.

When I use the SAVE5 discount code the VAT reduction is removed and the £5 is deducted from £103.51.

I think it's a cockup - they've applied the VAT reduction as a code and the order page will only accept one code so when you enter SAVE5 it removes the VAT reduction.

minimadtrix

Aha, you've just beaten me to it - I was just going to suggest that the VAT discount is a 'discount code'

deanos

Save 5 is a 5% discount code IIRC, you can only use one discount per order.

o_t_e

To clarify - the VAT reduction is not a code you enter. The VAT reduction is automatically applied by Dixons at checkout.

I've spoken to Dixons and they confirmed they won't honour the automatic VAT reduction if you use a discount code - wait till the VAT reduction is included in the original price if you want to use a discount code.

The irony is I would have happily waited till Monday to place the order until I noticed Dixons were claiming to offer the VAT cut now - shame they can't honour their commitments.