Will Argos be lowering their VAT?

GentleGiant_2

I forgot I can order it through Homebase, so have saved the VAT & another 10% so am happy

gord115

Quote by squidsworth "And dont forget the reduction is 2.13 pence in the pound and not 2.5p as the darn tv kept incorrectly telling people last weekend!!!"

Please explain to us non-Vordamans

DAMNOME

GentleGiant wrote: »

I forgot I can order it through Homebase, so have saved the VAT & another 10% so am happy

Thanks - I was watching Argos to drop it's price for the thing I wanted and checked the Homebase site today and had it for £38 less with the lower vat and 10 discount
:j

Jvic28

chris3349 wrote: »

Dont think this is right if so what about pound land (soon to be 97.8p lol)

It is right. It's just prices will probably go up to compensate so you may not actually notice a difference. (I sense you were joking though)

Pound

I think this VAT reduction is almost completely useless. Retailers can continue charging the same prices if they like, it just means that THEY pay a smaller portion of that money to the government. Argos &c are passing the reduction onto their customers but companies don't have any obligation to do that, they can put it in their own pocket if they like.

AB_KW

gord115 wrote: »

Quote by squidsworth "And dont forget the reduction is 2.13 pence in the pound and not 2.5p as the darn tv kept incorrectly telling people last weekend!!!"

Please explain to us non-Vordamans

In this example, i've used reduction rate of 2.1% to keep it a bit more simple and rounded to the nearest penny (finger crossed hoping maths is correct now!)

Net price of product is £10

adding vat at old rate of 17.5% would add £1.75 to the product making it £11.75.
adding vat at the new rate of 15% would add £1.50 to the product making it £11.50. This is a difference of 25p (or 2.5%).

Now, take the net price + old vat rate of £11.75 mentioned above and minus 2.5% (what people assume the product is going to be discounted by), this would give a discount of 29p, making the product £11.45. This does not equate to the real price of the product which is £11.50.

Take the net price + old vat rate again (£11.75) and minus 2.1% (or 2.1p in the pound), and it gives a discount of 25p, making the product £11.50. This is the same as the net price (£10) plus the 15% vat (£1.50).

I hope I've explained it so most people can understand (not very good at this sort of thing!)

AP

I remember when VAT went up from 15% to 17.5% in 1991, Argos did put up their prices immediately - at point of sale without changing their prices in their catalogues, until the next edition came out. The store assistants in Superdrug were all busy in replacing the price tickets with new ones with higher VAT. I hope both stores are going to do the same this time when VAT comes down.

The new price should work out to be: Old price divided by 1.175 and then multiplied by 1.15.

For wholesalers like Costco and Makro, VAT is added on separately and so the reduction should take immediate effect from today.

squidworth

gord115 wrote: »

Quote by squidsworth "And dont forget the reduction is 2.13 pence in the pound and not 2.5p as the darn tv kept incorrectly telling people last weekend!!!"

Please explain to us non-Vordamans

The earlier explanation is how I did it as well (was up at midnight to make sure the changeover went ok lol), at amazon found a different one which may also help (for some reason they've removed it now)

If something was priced at £10 then that would be an item at 8.51 with 1.49 vat (17.5% of £8.51 is 1.49). The same 8.51 now has 1.28 VAT (15% of 8.51 is 1.28) making it 9.79, making a reduction of about 2.1%

gord115

AB_KW wrote: »

In this example, i've used reduction rate of 2.1% to keep it a bit more simple and rounded to the nearest penny (finger crossed hoping maths is correct now!)

Net price of product is £10

adding vat at old rate of 17.5% would add £1.75 to the product making it £11.75.
adding vat at the new rate of 15% would add £1.50 to the product making it £11.50. This is a difference of 25p (or 2.5%).

Now, take the net price + old vat rate of £11.75 mentioned above and minus 2.5% (what people assume the product is going to be discounted by), this would give a discount of 29p, making the product £11.45. This does not equate to the real price of the product which is £11.50.

Take the net price + old vat rate again (£11.75) and minus 2.1% (or 2.1p in the pound), and it gives a discount of 25p, making the product £11.50. This is the same as the net price (£10) plus the 15% vat (£1.50).

I hope I've explained it so most people can understand (not very good at this sort of thing!)

Thanks, I understand now:T