Where did my VAT go?

[SamLouise]

Excuse my ignorance - finance not my strong point, hehe - I am fully aware of the change in the VAT rate but I'm a bit confused about a transaction I made online yesterday.  I went on to the site Expansys to get my OH his Christmas present and the prices quoted on the items that I wanted INCLUDED VAT but when I added them to my basket, the VAT disappeared (and I mean all of it, not just some of it) and the price dropped considerably.  I thought, ok, perhaps it will go back on when I actually pay at the checkout - but it didn't.  So my question is, where did my VAT go, please?  ???

[SamLouise]

[Maidenheadtaff]

I'd just keep quiet mate

We were in a garden centre today and it said we haven't adjusted the vat rate as its too complicated to do,i guess their s/w couldn't cope which is very odd but i asume the prices were reduced by 2.5% but we didn't buy anything anyway

[SamLouise]

MT, I'll certainly be keeping schtum about it but am just wondering what happened  ;D

Anyone  ???

[saddad]

Hopefully you have been blessed by the Christmas fairies!!  ;D

[hopalong]

A few retailers I've spoken to recently about the 2.5% VAT cut say it was just a headline-grabbing gimmick that would not make much difference to consumers or boost spending but was causing headaches for retailers.  Surely a much better idea would be to cut taxes for low and middle income families?

[debster]

well my mobile is pay as you go with orange they emailed me to tell me that if i top up my £10 it will now credit me with £10.25, so they have it sorted

[Carol]

I had that message as well Debs.  another message free if you put £10 in wow.  I have been wondering about food prices, spose I could google what is VAT rated.  Chocolate, cakes, sweets etc has VAT I think. 

Good for you Sam, a nce surprise for Xmas. 

I bought a jumper for myself on Fri. in Principals.  It wasa £35 on the tag but paid only £23??  after discount and VAT reduction was taken into affect.  Pity it has to go back though -  where is that diet sheet. :-[ :-[

[hopalong]

Ok, there's some good news. Let's stay positive!  :) However.... The VAT cut is temporary and gives the biggest benefits those with money to spend. And the people I mentioned in the earlier post who've moaned to me recently have been smaller businesses who find it harder to cope with this kind of change. :(

[SamLouise]

No grumbling from me, I've just worked out that it saved me £28-29 on my order  ;D I still think they'll come looking for it though when they realise what's happened, lol!

Carol, keep the jumper and tell yourself you'll be good after Christmas  ;D

[honeybee]

I work at Ikea and its not been possible to change our advertised prices just yet as thats a mammoth taks in itself, but the prices do automatically reduce at the till to consider the reduction in VAT.

[Moonbeam65]

Just starting to buy in new stock for our lotto store 2.5 less is making a difference will be passing on our savings to our members .

[caroline7758]

I was expecting Saddad to give us the maths on this- the reduction in the VAT rate is 2.5% but the reduction in price is only about 2.1%, because if something cost 100 + VAT, before it was 117.5, now it's 115, a difference of 2.5, which is only 2.1% of 117.5

If you see what I mean...!

[shaun01]

I was expecting Saddad to give us the maths on this- the reduction in the VAT rate is 2.5% but the reduction in price is only about 2.1%, because if something cost 100 + VAT, before it was 117.5, now it's 115, a difference of 2.5, which is only 2.1% of 117.5

If you see what I mean...!

nope not a clue i look at it this way if i spend a tenner i will save 22p if i spend a fiver i save 11p mmmmmmmmmmmmmmm not much is it  ???

[telboy]

O.K. my little experts,
bought two vouchers from Argos & for 'National garden' as Christmas pressies.
Who gets the VAT benefit when cashed in?

[Melbourne12]

O.K. my little experts,
bought two vouchers from Argos & for 'National garden' as Christmas pressies.
Who gets the VAT benefit when cashed in?

In theory, the consumer, at the expense of the retailer.  Assuming you bought the vouchers when the VAT rate was 17.5%, then the treasury will have got the 17.5% as of the transaction date.

When they're cashed in, with VAT at 15%, in theory, the recipient should get more goods for the face value of the vouchers, since prices should have dropped by 2.13%. 

[Shirley]

Some of the supermarket till receipts have an * against them - I think these are the items with VAT, i.e. chocolate biscuits.   SL I wonder if the item you bought was zero rated and VAT had been added to all the list prices. Like the others have said, keep quiet about it, but check your card payments just in case they take off the difference at a later date if it is a mistake