Shops not increasing VAT straightaway

on-the-count-of-three

30111987 wrote: »

Grocery, beauty, chilled and frozen ARE getting an immediate increase with the exception of some promo items. Signage will be displayed in stores to inform customers whilst staff change the thousands of price labels that need changing.

I thought food, groceries etc were exempt from VAT, or am I wrong about this?

Anyway, I for one didn't notice each and every (food) item's price being decreased when the 15% rate came in, so how can they justify putting prices up?

ManAtHome

Some foods attract VAT, although The Rules have the appearance of being made up by some lunatic high on a cocktail of booze, drugs, and cellulose thinners* - bit of a 'taster' here http://www.guardian.co.uk/commentisfree/2009/mar/30/peter-preston-food-vat

*other cleaning/drug-induced coma substances are available

pepperoni_2

gghh wrote: »

I know it's not much longer but I saw an advert for Currys saying they are holding the VAT increase until 4th Jan.

,,,,yes but the price of a cooker I wanted has gone up by £50 today:mad:

jenniewb

Topshop have a big sign on the website saying Vat wont be affected (it never actually went down in the first place!!)

John Lewis I read/heard earlier this year aren't thinking of increasing for a few months yet- something about needing additional signs and cost comming into it- think its going to have to be a more staggared price rise then.

Got an email from a company called delightful footnotes (they sell shoes) saying to beat the price increase they are offering 15% off shoes this weekend, could the vat rise fully on monday? who knows- they don't say either way. TBH the price of the shoes is the same as it would be had vat not been decreased in the first place (they sell Fitflops- you can tell from that).

I'd be very suprised if utility companies (British Gas, N-power, Powergen...etc) and mobile phone companies (3, Orange, O2..etc) and people like BT, Talktalk, sky, virgin and etc didn't increase the Vat from the last day you had your bill- but then maybe I'm just becomming cynical in my old age!

bonnie279

Evans are pleased to announce no vat increase. Doesn't say for how long though.

2520years

The Homebase Sale means that they're paying the VAT, but I don't know if that counts really.

shikoku

bonnie279 wrote: »

Evans are pleased to announce no vat increase. Doesn't say for how long though.

And Dorothy Perkins, probably all of the Arcadia group.

phatbear

pepperoni wrote: »

,,,,yes but the price of a cooker I wanted has gone up by £50 today:mad:

So you were gonna buy a cooker which was £2000? If thats the case you probably wont miss the 50 quid

RufusA

phatbear wrote: »

So you were gonna buy a cooker which was £2000? If thats the case you probably wont miss the 50 quid

It would have to be £2000 excluding VAT i.e. £2300 with VAT at 15%, rising to £2350!

Unless of course some unscrupulous retailers are using the VAT rise as an excuse for bumping up their prices by more than the VAT amount.

Rufus.

colin79666

sparky1664 wrote: »

I thought food, groceries etc were exempt from VAT, or am I wrong about this?

Anyway, I for one didn't notice each and every (food) item's price being decreased when the 15% rate came in, so how can they justify putting prices up?

Most food doesn't have VAT, but some considered non essentials do.
Prices were changed down when the VAT rate dropped - I know because I am one of the people who have to go round changing all the labels