Which companies are passing on the VAT cut? Discussion

MSE_Jenny

VAT cut . Get £££ back on purchases big and small.

On Monday the VAT rate changed from 17.5% to 15%. Here’s a quick Q&A (thanks to JW at PriceWaterhouseCoopers for help).

• Do shops have to cut prices? No. If they keep them at old levels, it’s a price rise, as effectively they’re increasing the pre-VAT price. Yet with the cost of price list changes & the poor retail climate it's likely. After all, dropping a £9.99 DVD to £9.78 looks weird. Many passing the cut on are more likely to leave some goods, and cut others by more than the difference.
  
  
• It’s a 2.1% not 2.5% price cut. Imagine an item at £100 before VAT. Add the tax and it now costs £115, where it used to cost £117.50. This means you save £2.50 per £117.50 (not per £100) a cut of 2.13%.
  
  
• Refund on goods ordered but not delivered VAT is charged at “time of supply”. So if you put a £100 deposit on a £5,000 kitchen, under new rules you should only pay a further £4,793 when settling the balance. The key's in the agreement, if it just said ‘VAT inclusive’, it can choose whether to pass the cut on. If it said ‘£XX plus 17.5% VAT’ or ‘VAT at the appropriate rate’, you may have a legal argument that it has to.
  
  
• Refund on goods paid in advance in advance? If you paid up front for a monthly subscription, eg, a gym, this falls under ‘continuous supply of services’ and it doesn’t have to change the price. Though BT is going to give refunds to all customers (it doesn’t have to).
  
  

Which companies are passing on the VAT cut?

Please use this thread to discuss who’s passing on the VAT cut and how to gain.

For starters, BT is passing on the VAT cut, even if you paid in advance for services you’ll be using in December.

Please post below to add your tips.

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whu

Marks & Spencer today on a card I bought- price shown was the same but when I went to pay it was reduced due to the VAT reduction

richardw

Large hot dog at Ikea was £1 now 95p, 5% off!

JAZ63

Matalan are taking extra vat off at till. so saved a little bit more as well as the 3 for 2 offer on certain items (mainly xmas gifts section ) I bought today

mountainchrisriver

Madasafish are passing it on...

Vodafone PAYT are giving 2.5% extra credit when you top up according to the text I just received...

Edinburghlass_2

Tesco show it as a reduction on the receipt where it says Multibuy Savings on non food and clothing.

laughing_cow

I've been doing my Christmas shopping over the past couple of days and I had VAT discounts at the till for all of the following: M+S, Paperchase, Boots, Primark, BHS, Disney Store, Jones the Bootmaker and Game.

I've also had a text from O2 to say that my mobile bill will receive the discount from 1st December.

Tama_J

Can confirm that Jessops have taken the VAT off every single price, although it's not currently reflected in the prices you see on the shelves. Not sure how long it's going to be this way, as I can't see them putting odd prices out on the shop floor, but know that for now everything in-store gets VAT taken off when it's run through the till.

J

jenniewb

Weight watchers bars when bought at a weight watchers meeting are down from £2.05 to £2.00- know this cos I help my mum out with her meeting every week by running the shop. Not everything else in the shop is reduced but there are some other bits and peices.

littlepinkstars44

New Look are, when you pay at the till they take it off

Amys

Premier Inns are passing it on, the price of a room I have booked for later in the month has gone down.