VAT reductions - being passed on by retailers?

beingjdc

RobertoMoir wrote: »

Are you saying you have an invoice that still shows VAT being taken at 17.5%? I'd be asking the management about that for sure.

No, there's no point me getting a VAT invoice as I have nothing I could count it as an expense against.

I'm saying that they have obviously absorbed the VAT cut into the 'profit' column rather than the 'prices' column. Given there was no notification of a price increase in advance of the VAT cut, that can't be accounted for by them having deferred a price increase that would otherwise have occurred.

RobertoMoir

beingjdc wrote: »

No, there's no point me getting a VAT invoice as I have nothing I could count it as an expense against.

I'm saying that they have obviously absorbed the VAT cut into the 'profit' column rather than the 'prices' column. Given there was no notification of a price increase in advance of the VAT cut, that can't be accounted for by them having deferred a price increase that would otherwise have occurred.

If they're supposed to notify you then a complaint is worth a punt. Presumably you can cancel a contract if the conditions are varied without notice so you could put it to them that way.

Of course, I'm sure they'll try and slime their way around the issue, but it will serve notice on them that you're not prepared to be taken advantage of quietly!

prowla

The Esso garage near my work has a Costa coffee; they are offering their large size (£2.55) for the price of the medium (£2.35); I gave the man on the till £2.40 the other day and got 10p back; I think 5p is about 2.5%.

TwoCan_2

prowla wrote: »

The Esso garage near my work has a Costa coffee; they are offering their large size (£2.55) for the price of the medium (£2.35); I gave the man on the till £2.40 the other day and got 10p back; I think 5p is about 2.5%.

That's it then...

I'm getting all my fuel and takeaway coffees from Esso from now on.

Perhaps we should all start a campaign to identify which companies are passing on the VAT reduction and which aren't and modify our shopping habits accordingly??

chewmylegoff

beingjdc wrote: »

No, there's no point me getting a VAT invoice as I have nothing I could count it as an expense against.

I'm saying that they have obviously absorbed the VAT cut into the 'profit' column rather than the 'prices' column. Given there was no notification of a price increase in advance of the VAT cut, that can't be accounted for by them having deferred a price increase that would otherwise have occurred.

possible that they raised a VAT invoice for the full year when you signed up to your contract and therefore they paid 17.5% output tax at point of sale and you are paying off the debt to them with monthly instalments. dunno.

Pennywise

RobertoMoir wrote: »

If they're supposed to notify you then a complaint is worth a punt. Presumably you can cancel a contract if the conditions are varied without notice so you could put it to them that way.

Of course, I'm sure they'll try and slime their way around the issue, but it will serve notice on them that you're not prepared to be taken advantage of quietly!

Look at your contract - if it says £30 plus VAT totals £35.25 per month, then they have to reduce it by law as the contract gives the net amount. If the contract quotes the price as being £35.25 including VAT, they don't have to change it.

Unlike in America, suppliers in the UK have to quote VAT inclusive prices to customers, so it is the vat inclusive price that is part of the contract. UK suppliers don't have to change the end selling price because of a change in the VAT. By comparison, in the US, prices are normally net of sales taxes in shops etc., so the tax is added ontop of the price on the item, so a change in sales tax in USA is automatically adjusted for, whether increase or decrease.