When Promos Go Wrong discussion

Former_MSE_Rose

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When Promos Go Wrong

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Richard_Spud

I have always doubted the legality of "We Pay Your VAT" promotions. I have never researched this and they appear to endure so I assume the VAT MAN is OK with them.

My doubt is founded on the fact that I understand that the VAT content (currently 20%) charged by a VAT registered retailer on retail goods is payable by the purchaser acting as a consumer and that a VAT receipt must be issued if requested - a minimum one with a VAT No. shown is sufficient although a full VAT receipt with the VAT content shown as a separate sum would be better.

At the point of sale the total sum is paid by the customer, including the VAT content. I opine that at that time the receipt is evidence in writing of the customer paying the VAT content and NOT THE RETAILER making the antecedent offer that "We Pay Your VAT"!

An interesting test might be to ask for for a further full VAT receipt with the VAT shown as a true deduction and then the total sum payable recalculated down at which point, I understand, the VAT regulations require that a VAT receipt be issued. Continue this a sufficient number of times and the natural result would be free goods, although I doubt if a retailer would agree to enter into the test!

Just a niggle I've had over the years.

RS

Esoog

I could be missing your point here, but don't they just give you 20% (whatever the VAT is at the time) back? Ie you're just getting 20% off the total so you are still paying the VAT..?

tellytart

When they say "we'll pay your VAT, it's a glorified way of saying 20% off".

In most of the radio ads they do use the "small print" to say VAT is still payable on the reduced amount and will appear on the receipt/invoice.

The trick here is they reduce the pre-VAT amount sufficiently that the new price with VAT is 20% less than the old price with VAT.

E.g, £100+VAT = £120 total payable.
We pay your VAT, you expect to pay £100

New price: £83.33+VAT = £100 payable. They've "paid" your VAT by reducting the pre-VAT price.

It's worth noticing that they've not reduced the pre-VAT price by 20%, so they're not cutting the price by quite as much as the headline would lead you to believe - about 16.6% discount on the pre-VAT price.

hunnicuddler

Can't upload a photo - how dumb to ask us for photos only to be given a box to put a URL in and then tell me I can't

SewerSide

I think the "50% off free fitting" is 2 separate deals, ie 50% off the cost of the carpets, and then free fitting.

milkmaid

In browsing Tesco's website last night, I found that they have a sale going on. Brilliant! Only... they have little banners on some items proclaiming that these items are 20% off, when in fact they've dropped the price by 50p, no matter the starting price.
For example, there's a gilet that was £8 and is now £7.50. And a girl's outfit which was £14 and is now £7. Lots of clothes are marked down by 50p and labelled as 20% off.

Obviously, someone doesn't understand how much 20% off a price actually IS.

newsgroup_monkey

Here's one I sent to Bitterwallet (hotukdeals) a while ago. They love this sort of thing.

purpleweasel

I saw one on the tv the other day, "most customers could save up to £XX by switching to us!". Is it me, or does this really mean nothing at all? "join us! you never know, there's a faint possibility that one of you will not be any worse off!" sorry, i will get off my soapbox now

Willow92

Pretty sure I saw something in Tesco like: £1.20 each or two for £3. May have been for bottles of squash...

scratchyrat

I've got a good one but as a new user I can't post links