Tesco misprice discussion area part 15

ma6jrp

I think it is even more complicated:

There is Duty and VAT on drink purchases.

Duty is a fixed amount ie 13p a litre on beer or 120p on a bottle of wine (these vary with the strength). This can and probably is paid upfront when Tesco purchase it.

And then VAT (17.5%) is charged on the selling price of the item, as Tesco change the prices often this can only be calculated after the product is sold. The VAT issue is no different to alot of products that Tesco sell that are non food or childs clothes. I believe then if something is given away then no VAT is due to the consumer as it had not been sold for any value. But Tesco will then have to pay the VAT to the supplier. As the post above says this is balanced out with the paying the difference between the total VAT they have been charged against the VAT income.

(They only possibility is that if duty can be claimed back on damaged products such as a broken bottle of wine. If the overcharge refunds are handled in this way and a refund of duty is possible then they may have a case. If have heard manages said to 'waste' items when given an overchange refund. So it could will be that they are handled in the same way on the till.)*

*Having looked into it further the VAT system is designed to stop shops wasting products, making it less open to abuse than a Sales tax system.

So Tescos are not doing anything wrong its just costs them evan more money!

BigJonnyB

yes, tesco will pay tax when they purchase the product, however, vat is charged when they sell the product (a bit confusing I know!). The reason that Tesco or any other company can't pay the full tax when buying the product is because it is based on a % of the selling price. So take the moet - this has changed from £19.94 to £20.94, to £15.94 and now back to £20.94. The vat will have varied, and will do in cases when items are reduced to clear (i.e. meat close to the sell by date). I am imagining that r&r works something like this; a refund is given in exactly the same way that a normal refund would be if an item was being returned. However, a log is created of the pricing error so that stock counts can be adjusted by the relevant department (and pricing can be checked elsewhere). However, does mr T then pay the due vat or are the items just 'lost'. It sounds unlikely that such a large company could overlook something like this, or that IR would not have noticed. But then IR wont have a clue about the r&r policy, and Tesco's might just have made a bit of a blunder...
JB

Shamish

Can sombody please explain to me how the gaymers deal is working?

Noting it's 3 for £4 and people are buying a 4 pack?

Dont understand lol

Constantine

BigJonnyB wrote:

But then IR wont have a clue about the r&r policy
JB

I am sure they know all about it.

A_little_stressed!!

AHH! HELP! 2nd R&R attempt 2day!, No Tvs @ mine, so tried DVDs, found 2 with 3 for £18, one with no sticker but in same section, went 2 till & got charged 2 for £12, full price 4 non stickered. Went 2 CS, they got the DVD man down who said they shouldn't be out, that offer isn't on. They wouldn't even let me get the three at £18 let alone R&R. Ended up getting all my money back! The two with 3 for £18 stickers were also on the shelf with 2 for £12! Can I still complian to HO?

A_little_stressed!!

If I find two 3 for £18 DVD & 1 2 for £12 DVD can I get R&R?

mor7s_2

ginjim wrote:

sorry but you are combatting from the wrong angle

you have promotions and sels giving wrong price indications
this price indication is an invitation to treat
surely wouldnt it be best in combatting the employees to rid the store of wrong selling price labels
wouldnt it be easier to take a few posters down than treat customers like criminals

That was exactly my point but was lost on TE so couldn't be bothered going on about it.

Surely a major plc has a slightly more scientific method of checking prices than chat rooms on the 'net. Getting the other TE's to do their job properly might be a better use of their time.....mind you if they did that then there'd be no R&R's so keep on screwing up I say. Just don't blame/accuse the public of abusing your policy - if you got the prices right there would be no need for it.

frenchman_2

BigJonnyB wrote:

I will be replying to posts made in response to mine later today (a little short of time right now), but thanks to all the support...I will update you all with what we're doing. Tesco's made me so angry yesterday that I was laying in bed thinking, and believe that I may have thought of something that could get them into very serious trouble...but I am not an expert and it depends on how they are doing their refund process.
JB

Too long to quote...;)
Good luck mate and keep us inform

A_little_stressed!!

please help me with my last post coz I'm going to ring now

CheekyLittleMonkey

A_little_stressed!! wrote:

please help me with my last post coz I'm going to ring now

Get a refund and walk away, save yourself of the hassle of raising your profile in that store, then hit 'em harder in the long run.