Stores not passing on Vat Increase?

charlie-chan

I was at work today for Mr T and I noticed that my managers were changing the price labels on household goods (washing powder etc).

So Tesco are indeed embracing the new VAT cost.

jenniewb

A very strange thing just happened to me!

I was looking on the All Saints site, I had on sunday selected a pair of gloves I wanted and put them in my shopping basket. They were £22.50. I had no intention of buying them I was just window shopping (sad I know but I really am broke and like to imagine....*runs to hide in shame!*).

I went back to the site at around 11.30pm last night to see the gloves still in the basket! I thought I'd check to see them, but as I got the mouse near to the basket tab they then vanished. Obviously sold out, and my basket was empty.

I went back to the site ar around 3am just now, saw the gloves were again still in my basket- but this time were £23! (Again vanished). Quite bizarre- I guess All Saints are indeed passing on the extra 2% (or in this case 2.2%)

shopndrop

M and M Direct not increasing VAT until 12 January.

Derivative

julie114 wrote: »

Hi
I had some kids clothes in my basket before midnight-forgot to checkout, just gone back and babies pj's were £7.65 each are now £8.25 and boys jacket aged 14 has increased from £35.70 to £37.20 ??
Im puzzled, they are in the sale , I thought kids clothes were exempt from vat anyway. Anyone know what age vat is payable from, I thought the 14year Ted Baker jacket might come under adult sizing but not the pj's

VAT is generally payable on the older kids clothes, it's discretionary, the age is around fourteen though as that's when adults are around the same sizes.

For the babies stuff, it's zero rated. However if you work it out, 7.65 to 8.25 is about an eight percent increase. Nothing to do with VAT, just the retailer upping prices.

Peartree

I've been to several shops today and have just checked my receipts. TK Maxx, M&S, Dunelm and Clarks did not charge the extra VAT. All the items I bought were exactly as marked and clearly hadn't been marked up to add the VAT. Aldi did - there is an extra line on the receipt where it has been added.

Whether there is a policy to absorb the VAT is debatable, it may be that they want to update their pricing and systems after the sales have finished and when the new stock is coming in. The guy in TKMaxx said they were going to 'absorb' the VAT increase. Call me cynical but if a retailer says this I imagine it will only be until the publicity dies down then the prices will gently creep up one way or another. With the increases in prices of raw materials and fuel it would be hard to see how they could absorb the costs indefinitely.

roses

What's happening at Poundland and 99p Store?

KxMx

The business model of the shops mentioned means they are not going to change their prices, maybe some offers will be reduced such as 2 for £1 instead of 3.

The entire branding is such that they sell all stock at one price. They have loss makers like all other shops to get people in and buying other stuff.

Often they buy in unwanted stock such as shampoo in old packaging so are able to negoitiate on their costs.

With the VAT drop the prices didn't go down.