VAT Changes

[£3.73]

Even though it was Indian giving by the Government (giving with one hand and taking with the other) ...

... and the drop in VAT to 15% is to be welcomed ...

... realistically, is this saving going to be passed onto consumers ...

Has anyone noticed the price of anything going down ?

Please discuss ...

[UP THE ROAD]

Yes--I was in Thorntons yesterday and the refund of vat was deducted when I paid--a small saving but very welcome. Some shops still haven't changed the prices--I Wonder Why - as if I cannot guess-If Thorntons can do it so fast then the rest should be made to asap.

[EileenH]

The Vat has to be reduced by law. A business can't decide that they're still going to charge 17 1/2 %. The government only take 15% from 1st December. My husband has his own business and as from Monday morning we adjusted the Vat to 15% on each invoice made out. I was in Currys shopping on Monday and got a nice surprise when I went to pay at the checkout.

[EMDEE]

Businesses that issue invoices for every transaction are bound to charge 15% as from 1 December, and that is an inescapable fact. Retailers who issue till receipts to customers are from that date obliged to declare 3/23 of their gross takings as output tax, and so if they do not adjust their prices downwards by 1/47, then they are passing on a net of VAT price increase to the customer and effectively pocketing the 2.5p VAT reduction. In today’s economic climate, this is a nice windfall for some small businesses, and I’m sure that the chances of this happening on a widespread scale were fully appreciated by Messrs Darling and Brown. If not, then they shouldn’t be doing the jobs they are doing!

[£3.73]

It might have been an interesting project to go round, say for talking's sake, the supermarkets ...
and take a list of prices the day this measure was announced ... and compare them to today's prices ???

ie. I'm wondering if there was any price hiking between then and December 1st.

And what the relative benefit has been.

Just curious

[EileenH]

I'm not sure there is Vat on food. If you go to a cash n carry the food and kids clothing is usually Vat free is it not?

[EMDEE]

It might have been an interesting project to go round, say for talking's sake, the supermarkets ...
and take a list of prices the day this measure was announced ... and compare them to today's prices ???

ie. I'm wondering if there was any price hiking between then and December 1st.

And what the relative benefit has been.

Just curious

It would indeed be interesting. If only we could spend the same time and effort that the supermarkets are able to spend on maximising the profit from us, the consumers.

[linda_j]

It might have been an interesting project to go round, say for talking's sake, the supermarkets ...
and take a list of prices the day this measure was announced ... and compare them to today's prices ???

ie. I'm wondering if there was any price hiking between then and December 1st.

And what the relative benefit has been.

Just curious

Im in asda nearly every day and there has been no price hike ...... Vat refunds are coming off all items purchased in all the shops I have been in.... It doesn't come off food as there is no vat added to food but it comes off the other stuff in asda.....
Hope this helps.....

[Beachcomber]

Out of interest, has the price of petrol in the town come down as a result of the VAT reduction?

[Tosh]

Out of interest, has the price of petrol in the town come down as a result of the VAT reduction?

Didn't fuel duty go up at the same time to cancel out the VAT drop (along with tobacco and alcohol duties)

[Beachcomber]

Out of interest, has the price of petrol in the town come down as a result of the VAT reduction?

Didn't fuel duty go up at the same time to cancel out the VAT drop (along with tobacco and alcohol duties)

You're quite right, Tosh. I forgot about that.

[Tubby the Tuba]

nice to see a barrell of oil $100 cheaper than it was a few months ago, down to $40 a barrell now, pity we dont see the same sort of drop in relation at the pumps....

[father ted]

nice to see a barrell of oil $100 cheaper than it was a few months ago, down to $40 a barrell now, pity we dont see the same sort of drop in relation at the pumps....

That's just mad talk!