Lidl not increasing VAT to 17.5%

JasonLVC

spaceboy wrote: »

Exactly.

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

Fruit juice is a BEVERAGE and therefore standard rated, whereas a fruit is, well....a fruit and a foodstuff and therefore zero rated.

Same goes for tea, coffee - in natural leaf/bean form they are zero rated, serve them in a mug hot and they become standard rated.

moonrakerz

Premier wrote: »

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

This includes cakes, many biscuits

However, luxury foodstuffs such as chocolate topped biscuits are liable for VAT.

This shows how stupid the VAT Laws are !

http://en.wikipedia.org/wiki/Jaffa_Cakes

elfen

A Jaffa Cake has a cake base, not a biscuit one, so is therefore considered a cake, and therefore ineligible for a VAT charge to be placed on it.

Li0nhead

I noticed that the day after the budget announcements in November i think it was Aldi had a full page ad saying they were not going to increase prices (well the 2.5% VAT rise im sure theres some advertising loophole so they could increase if they had to).

Storck

Li0nhead wrote: »

I noticed that the day after the budget announcements in November i think it was Aldi had a full page ad saying they were not going to increase prices (well the 2.5% VAT rise im sure theres some advertising loophole so they could increase if they had to).

Did they reduce them when the VAT came down? Some places just left them the same and kept the difference. :mad:

csh_2

Storck wrote: »

Did they reduce them when the VAT came down? Some places just left them the same and kept the difference. :mad:

Yes Aldi did reduce them, I spent about 3 hrs putting up the new price tickets.

hippey

They will all be increasing VAT from 01/01/10, however this may not be passed on to the customers straight away.

Many stores are advertising 'no VAT increase in our sales' etc etc etc, they WILL have to pay the VAT increase and if you asked fro a VAT receipt it will be charged at 17.5% but the actually price might not have changed.

I think we will all find it will be sneeked back in the back door, food is a difficult one anyway as it is mostly zero rated, but other things wil be noticed quickly, petrol being one of them! it's almost a 3p p/ltr increase.

At least it's only 17.5% not the 20% that some speculated.

Li0nhead

hippey wrote: »

At least it's only 17.5% not the 20% that some speculated.

Wait till after the election......

thor

Storck wrote: »

Did they reduce them when the VAT came down? Some places just left them the same and kept the difference. :mad:

I had a laugh when I went past one of those poundshops and saw a huge banner declaring that they were not putting up prices due to the VAT increase. Funnily I remember their prices remaining at one pound for the whole year after the decrease in the first place!

fullstop

Went to the supermarket today , stocking up on goods, toilet rolls, kitchen towels, toothpaste, soap, washing up liquid etc. Was it worth it? they will all be used, saved a little bit in tax, rather keep it in my pocket than the chancellors.