Which companies are passing on the VAT cut? Discussion

famous.last.words

blue_monkey wrote: »

The key to this thread is in the title.... discussion.

So it either is a discussion, or it isn't. I did not make it a discussion, MSE did, so I can discuss whatever I want. Same as you can!

Ok... by your logic of following the title of the thread to the letter... the only discussion should be surrounding "Which companies are passing on the VAT cut"... still don't see how petty political debates fit in there?

It was a polite request, so as to people who are actually looking to see which companies are passing on the VAT cut being able to complete their aim. not much to ask really when the arms is full of threads where such debates go on.

nanag_2

funkyparott wrote: »

I've ordered a £3,000 kitchen from B & Q.

This was done three weeks ago. At the time, I opened the B & Q Credit Account to get an interest free deal for 3 months.

The kitchen will not be delivered until January.

Do they have to give me a further reduction due to the VAT decrease?

Cheers

FP

We also recently ordered 2 new bathrooms from them and wondered where we stand on this as it works out quite a lot of money, it will be interesting to see what happens.

nanag

hidannyhere

Just had an email from Maplin Electronics actually confirming that they have raised their pre-VAT prices to make the total cost the same as is was before! Amazing!

hidannyhere

hidannyhere wrote: »

Bought an item from Maplins Electronics yesterday and they had obviously raised the pre-VAT price as the total cost was the same as it was before 24th November, although the receipt showed VAT at 15%. The cashier just said That's the price.

Just had an email from Maplin Electronics actually confirming that they have raised their pre-VAT prices to make the total cost the same as before! Amazing!

sandysaves

Amazon passed on the cut. I had my eye on a camera that was just short of £250 and it went down by about £6 something. However in the last few days it has gone back up to just 22p short of the pre vat cut price. I think thats a bit sneaky to say the least.

Helitrooper

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.

Section 89 of the 1994 Value Added Tax Act states:-
"89 Adjustments of contracts on changes in VAT
Where, after the making of a contract for the supply of goods or services and before the goods or services are supplied, there is a change in the VAT charged on the supply, then, unless the contract otherwise provided, there shall be added to or deducted from the consideration for the supply an amount equal to the change."

Does this not mean that they are obliged to reduce the VAT charged to 15%?????

hippey

I have noticed that Next have increased their non-sale items back to the pre-VAT price on most of their items.

Sneaky way of doing it during the sale, but I suppose prices were always going to rise anyway.

MattyMatty

Every item my family bought in Leeds today was £something.99 - after a brief period of post-new-VAT prices, it looks as if we're back to the same old £blah.99. Just as I predicted. So we, the shoppers, are the losers while the stores profit.

billy1902

I just want to share with you all some stores which were giving the VAT cut but are no-longer doing so:

Wallis were giving the VAT cut up until 27 December 2008, they are now saying that their prices reflect the cut in VAT, which I doubt as a pair of trousers still cost £25.00 exactly.

Robert Dyas have told me that their suppliers have put up the VAT that they charge them so they have had to pass this increase onto their customers, but I was assured that they had reduce hundreds of items though. So I put it to the manager of one store that if I come into but a fan heater, that has not had the VAT reduced and still carrying a price with VAT at 17.5%, but there is on the other hand a pot that has been reduced I should buy the pot boil some water in it and place my feet in it to keep warm. She suggested I speak to her Head Office.

HMV are not passing on the VAT cut, but they are telling you about the nice bag your goods come in.

Monsoon are not passing on the VAT reduction, well not on their sale goods, I bought a jacket that was originally £65.00, 50% off made it £32.50.

I thought the whole point of the VAT cut was to kick start the ecconomy and to restore consumer confidence and to gets us out spending again. If companies are not passing on this reduction, how will this kick start the ecconomy? because I for one will not be purchasing items if they do not reflect the reduction in VAT, unless I am really desparate!!!!!

harryhound

The change in VAT just puts a little more short term liquidity into the system and a bit more onto the country's long term borrowing deficit.
In the short term the exchange rate has fallen, this will put up inflation of the imported goods in the shops much more than the fall in VAT and in the long term saddle our children with debt and/or the possibility that inflation will destroy the living standards of those with savings.
There is no easy solution to the current mess and tinkering with VAT won't help much.