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Lidl not increasing VAT to 17.5%

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DCFC79
DCFC79 Posts: 40,641 Forumite
Part of the Furniture 10,000 Posts Name Dropper
edited 22 December 2009 at 9:41PM in Food shopping & groceries
Thought id tell you guys that lidl are keeping the vat at 15% and not increasing it to 17.5%, its from the 28/12/09 but not sure when it ends, its in the lastest leaflet eg the 1 with a big circle with a cross through it with vat 17.5% in the circle
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  • Storck
    Storck Posts: 1,890 Forumite
    Tenth Anniversary Combo Breaker
    VAT doesn't go up till 1/1/10 so there is no reason for them to put it up on 28/12/09.

    Whilst on this note, stores have been given some flexibility about shelf edge labels in first week of January due to VAT changing. Not sure if that means Tesco etc will refuse double difference etc.
    If you find you are drinking too much give this number a call. 0845 769 7555
  • DCFC79 wrote: »
    Thought id tell you guys that lidl are keeping the vat at 15% and not increasing it to 17.5%, its from the 28/12/09 but not sure when it ends, its in the lastest leaflet eg the 1 with a big circle with a cross through it with vat 17.5% in the circle
    Lidl can't decide to keep VAT at 15%, that's for the Chancellor! However, they can decide to reduce their profit margin in order that the retail selling price remains unchanged.
  • And don't forget most food is zero-rated for VAT anyway so there's no VAT in the first place...
  • spaceboy
    spaceboy Posts: 1,928 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    jezza2412 wrote: »
    And don't forget most food is zero-rated for VAT anyway so there's no VAT in the first place...

    Exactly.

    Can anyone explain though why fruit juices get VAT added but cake doesnt?
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    spaceboy wrote: »
    Exactly.

    Can anyone explain though why fruit juices get VAT added but cake doesnt?

    Most, if not all, staple foods are zero rated for VAT purposes.

    This includes cakes, many biscuits, fruit & veg, etc.

    However, luxury foodstuffs such as chocolate topped biscuits are liable for VAT. Similarly, fruit juices are considered a luxury and therefore also attract VAT at the standard rate.

    Nothing to stop you buying the fresh fruit and squeezing the juice out yourself, then there will be no VAT to pay :)
    (and it'll probably taste better and contain more goodness than commercially squeezed products)
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Well im just passing on what it says in the leaflet, it says "VAT Increase ? No Thanks Darling! At lidl we are not passing on the 2.5% VAT increase to our customers",
  • raebhoop
    raebhoop Posts: 1,234 Forumite
    Doritos made from corn...no VAT Crisps made from taters VAT to pay.
    Which 2000 quid a week pillock thought that one up.
  • jdturk
    jdturk Posts: 1,636 Forumite
    they may not have reduced the pricing in the first place so it could just be as normal
    Always ask ACAS
  • custardy
    custardy Posts: 38,365 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    spaceboy wrote: »
    Exactly.

    Can anyone explain though why fruit juices get VAT added but cake doesnt?

    because cake doesnt grow on trees :D
  • paulwf
    paulwf Posts: 3,269 Forumite
    I think M&S aren't changing food prices to reflect the new rate of VAT until something like the 12th Jan (not sure of the exact date) as there will be too much going on around 1st Jan to implement widespread price changes.

    Luckily non-food items have kept the same price tickets throughout with a reduction being applied at the till, they just need to cancel the reduction when the team get time after the 1st.
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