Please let me know which companies have not passed on the new lower VAT

kestel

4onthemove wrote: »

I have been noting down prices of goods before the change in VAT and after the change in VAT.

Amazon prices have NOT changed even though they are advertising on their website that you can buy goods in November at the new 15% VAT rate.

I know 2.5% is only a £2.50 savings on a £100 item, but companies like Amazon are conning us in believing we are getting a better deal.

The 2.5% drop in VAT equates to a £2.13 reduction per £100 spend NOT £2.50 as most people do not fully understand the VAT calculation.

Example an item that was £100 at 17.5% VAT:

£85.11 + 17.5% VAT = £100.00
(17.5% of 85.11 is 14.89 so 85.11 + 14.89 = 100.00)
£85.11 + 15.0% VAT = £97.87

SAVING = £100.00 - £97.87 = £2.13

vixarooni

I wish i was good at maths

Bob63

kestel wrote: »

The 2.5% drop in VAT equates to a £2.13 reduction per £100 spend NOT £2.50 as most people do not fully understand the VAT calculation.

And the pedant of the week award goes to...

Actually it is a £2.50 saving if you are buying a £100 item which is priced exclusive of VAT, so the poster you belittled may have been 100% correct. I do wish people fully understood the VAT calculation.

blue_monkey_2

cheesy.mike wrote: »

And the pedant of the week award goes to...

Actually it is a £2.50 saving if you are buying a £100 item which is priced exclusive of VAT, so the poster you belittled may have been 100% correct. I do wish people fully understood the VAT calculation.

Unless you are buying for your business/trade in a cash and carry, at a trade counter or on some websites (such as Euroffice, Screwfix) the majority of consumers will by buying at prices that already include VAT. Indeed, I cannot think of a retailer on the high street that offers goods for sale excluding VAT. If buying trade exclusing VAT then none of this will not be applicable as the till will be adjusted and the 15% rate of VAT applied to those goods when going through the till instead of the usual 17.5%. There is no need for these people to reprice their goods.

High Street prices will not be discounted by £2.50 oer £100 purchase, but £2.13 so the response from the poster was actually correct for the most of us. Those of us that are VAT regsitered understand how it works but there are a lot of consumers who do not understand and this is leading to confusion. I certainly would not show myself up in Primark by arguing £1.06 off a £50 purchase. That is just crazy.

I did say when this all started that the Chancellor was leading a lot of people into a false sense of security over this so called 'tax cut', I wonder how many more people will be in debt because they think they are saving loads more than they actually are out of ignorance.

GentleGiant_2

ijrussell wrote: »

Maplins haven't passed on the savings - bought a network hub for 24.99 - VAT Receipt showed 15% as it should.

Thanks - but bad news as I need to make an order

Any others I should avoid LOL

retrocircles

ikea ARE passing on discounts. little sister was complaining about spending her entire shift changing prices! :rolleyes:

Paddy2eyes

IMO retailers changing prices is a short term sales gimmick, being seen to do the right thing. In retail, goods are generally priced at certain price points, e.g. £2.99. Keeping the base price the same and applying the new vat rate changes this price to £2.93. I think it will not be long until goods are at the old fimilar price points again

GentleGiant_2

You are probably correct.

Bethere have just sent me an email to say they are lowering their prices. (free install currently via Quidco & up to £76 back)

cherrykerry

What many people don't realise is that over the last few months trade prices to small buisnesses have been creaping up and up but the RRP of items in many cases has not gone up at the same rate meaning they are getting less profit. With the VAT reduction it will help just a little for small buisnesses to keep going. For the bigger companies it is not such an issue as they get bigger discount rates with their suppliers so it is easier to pass on a saving. I think the media and the government has to accept a lot of the blame for making people think they will automaticaly get the discount when they go shopping :mad: . What everyone also needs to remember is that this new VAT rate is only going to last 13 months, it will then go back up to the old rate so for many businesses its not worth the hassle of changing the prices for such a short period of time :rolleyes:

dreamlife99

got text from o2 to say they ARE passing on the vat drop savings too