Has anyone else noticed....

jenniewb

I have seen it on clothes in stores like Topshop, but not with food - I knwo alot of food is actually exempt from VAT so don't think there would be much of a price difference anyway unfortunetly.

Jvic28

sturll wrote: »

That today VAT has gone down to 2.5% yet supermarket prices seem to have gone up to account for it?

I know I'm just being picky but VAT hasn't gone down to 2.5%, it's gone down to 15%.

I don't think we're really going to notice big savings unless you're buying something really expensive to begin with.

I saved 10p when I went to the cinema yesterday though, every penny counts I suppose.

kathie1101

dazzer68 wrote: »

vat is normally considered to be on what the government call luxury goods!

That's why you know it's men that make the rules up as to what is luxury and what isn't - cos "ladies products" are not vat exempt oh well I suppose us ladies will be saving a few measly pence each month now!

Abbafan1972

I guess the OP meant to put that it's gone down by 2.5%

Just got my Tescos groceries delivered and got 10p VAT back, wow!

Bought a Xmas present from Argos yesterday which was £39.99 and when I paid for it came to £39.19

h4zel

kathie1101 wrote: »

"ladies products" are not vat exempt

Oh and it's such a LUXURY every month to have to go throught that, thats why we pay VAT!:rolleyes:

MrsBartolozzi

kathie1101 wrote: »

That's why you know it's men that make the rules up as to what is luxury and what isn't - cos "ladies products" are not vat exempt oh well I suppose us ladies will be saving a few measly pence each month now!

I don't think we will notice a change as vat on "ladies' products" is only 5%.
See here for a list of items subject to VAT, and the rate.

jenniewb

MrsBartolozzi wrote: »

I don't think we will notice a change as vat on "ladies' products" is only 5%.
See here for a list of items subject to VAT, and the rate.

I thought it was a 2.5% reduction on VAT? or are you saying we only pay 5% tax on time of the month things?

MrsBartolozzi

The link I posted shows how much vat is paid on which things. Some things, like most food are not subject to vat. Some things like chocolate and booze have a STANDARD rate of tax at 17.5% (now 15%).Other things like electricity and ladies' things are on a REDUCED rate of tax at 5%.
I think I remember something like the new government tried to abolish vat completely on these two things, but to do so it would have had to go to a Euro vote (or something silly like that), and that as other countries pay a tax it was unlikely to go through; so they dropped it as low as was permissable - 5%.

It is the Standard rate that has been reduced and not the reduced rate, so yes, we currently pay 5% on those things, but because it is not a standard rate of vat I don't think the reduction will affect tampons etc (But I would love someone to prove me wrong). See here for a fuller list of what rate of vat is paid on what things: http://www.hmrc.gov.uk/vat/rates-goods.htm


MrsB.