Sony VAT Back - Mis-leading advertising and offer.

MrWhiskins

Just thought i'd post my disappointment with the current 'Sony VAT Back' offer which is being advertised online and on TV.

I bought a Sony 37" TV back in November from Currys, being attracted by the VAT back offer. So, VAT is currently at 17.5% i'd get a total of 17.5% cash back. Thats what you would think, but upon being paid it was short on the figure I'd calculated I would get back (I got approx 15% cashback). I've been unable to get hold of Sony to query so a bit of searching on the net found the following statement on the Sony Web site (in small letters at the bottom)

Please note the price that you have paid in the UK includes VAT at the standard 17.5% rate; this is added to the ‘net’ or ‘ex-VAT’ price of your Sony product to give the retail price you paid. Of the overall retail price, VAT constitutes 14.89% not 17.5%

So I have been paid the 'correct' amount but I believe I have been mis-led by Sony's advertising and the shop as they didn’t mention the above.

So, just a warning to anyone thinking of taking up this offer, its not all it seems
:mad:

Icm76

There is nothing misleading about it, if you can't do the arithmetic or understand percentages then you can't blame Sony for that. Sorry to sound harsh, I'm totally in favour of highlighting shabby behaviour by any business, but this time I don't think they have done anything wrong.

PasturesNew

TV costs £100. VAT is £17.50
You buy the TV at £117.50 and get the VAT back, which is £17.50
£17.50 is 14.89% of £117.50

I have no idea why anybody would think it would work out any different.

Sui_Generis

I agree if they'd said you'll get 14.89% of the purchase price back, it would have been even more confusing at a casual glance.

sarah1972

Icm76 wrote: »

There is nothing misleading about it, if you can't do the arithmetic or understand percentages then you can't blame Sony for that. Sorry to sound harsh, I'm totally in favour of highlighting shabby behaviour by any business, but this time I don't think they have done anything wrong.

PasturesNew wrote: »

TV costs £100. VAT is £17.50
You buy the TV at £117.50 and get the VAT back, which is £17.50
£17.50 is 14.89% of £117.50

I have no idea why anybody would think it would work out any different.

Sui_Generis wrote: »

I agree if they'd said you'll get 14.89% of the purchase price back, it would have been even more confusing at a casual glance.

I agree, nothing misleading about it at all. Just basic arithmetic.

madjay

I not misleading ...the 14.89% of the Gross figure is equal to 17.5% of the nett figure ...basic arithmetic.. you just hope they would pay 17.5% gross figure...

Enterprise_1701C

Simple way of working out VAT on a product price that includes VAT is to divide by 117.5 then multiply the result by 17.5. Found this the easiest way without a calculator!

pstones578

MrWhiskins wrote: »

Just thought i'd post my disappointment with the current 'Sony VAT Back' offer which is being advertised online and on TV.

I bought a Sony 37" TV back in November from Currys, being attracted by the VAT back offer. So, VAT is currently at 17.5% i'd get a total of 17.5% cash back. Thats what you would think, but upon being paid it was short on the figure I'd calculated I would get back (I got approx 15% cashback). I've been unable to get hold of Sony to query so a bit of searching on the net found the following statement on the Sony Web site (in small letters at the bottom)

Please note the price that you have paid in the UK includes VAT at the standard 17.5% rate; this is added to the ‘net’ or ‘ex-VAT’ price of your Sony product to give the retail price you paid. Of the overall retail price, VAT constitutes 14.89% not 17.5%

So I have been paid the 'correct' amount but I believe I have been mis-led by Sony's advertising and the shop as they didn’t mention the above.

So, just a warning to anyone thinking of taking up this offer, its not all it seems
:mad:

It's only misleading for people who can't add and subtract correctly. FYI when VAT goes to 20% prices will not increase 2.5%.

Coopdivi

The OP has got it completely wrong as everybody has pointed out but Sony and/or the retailers have used some chicanery over this offer. Just before the deal was introduced many retailers increased their prices so that even with the VAT reduction many consumers were no better off than before the offer.

See this article from Bitter Wallet for more details.

http://www.bitterwallet.com/what-sonys-vat-cashback-promotion-gives-with-one-hand/36830

Antispam

Sony have a online calculator

http://www.bestbuy.co.uk/sony-vat.aspx

choc_mouse

Not quite related to OP but related to Sony's VAT cashback offer.

I want to purchase a camera from Play.com. As some of you will know they are a company based in Jersey. play.com are advertising as if the cashback would be valid however. Would Sony honour the cashback claim as it seems their T&Cs say I should purchase it from within the UK?

play.com have the lowest price of all (before cashback) but if I don't qualify for the cashback then I'd end up paying more getting it through play rather than Amazon/other. Quick replies welcome as offer ends this week!