Discussion
pioneer said:
Any other retailers got a take on this?
I'm not a retailer - but as a customer this is what I expect retailers to do. So it's only retailers who will win.It's all a big con anyway to buy the next election - we know public finances are screwed, so the lost VAT (£18bn) is going to be borrowed.
Hi,
well at least it may help the retailer a bit I suppose if you can retain
a little bit extra in profit. My business is mostly trade and so nearly all my
customers claim back the VAT and so it will make little on or difference to me.
At least as a wholesaler our invoices show VAT separatley and as we have a catalogue
with ex VAT prices we are not obliged to put prices on everything in the trade counter
area. But I suppose the end user ( ie person getting electrical work done) may see
some benefit when they pay the invoice.
I guess the whole idea is to stimulate sales but in our game (electrical wholesale)
our customers are seeing more ,'cash' no VAT, jobs. This doesn't really help us other
than paying less in credit card fees as we obviously still have to charge the VAT that
shows on the invoice.
well at least it may help the retailer a bit I suppose if you can retain
a little bit extra in profit. My business is mostly trade and so nearly all my
customers claim back the VAT and so it will make little on or difference to me.
At least as a wholesaler our invoices show VAT separatley and as we have a catalogue
with ex VAT prices we are not obliged to put prices on everything in the trade counter
area. But I suppose the end user ( ie person getting electrical work done) may see
some benefit when they pay the invoice.
I guess the whole idea is to stimulate sales but in our game (electrical wholesale)
our customers are seeing more ,'cash' no VAT, jobs. This doesn't really help us other
than paying less in credit card fees as we obviously still have to charge the VAT that
shows on the invoice.
On one occasion where I handed my notice in, I was flattered to hear the boss say "If you stay, we'll give you an extra £5k pa"
Then I thought, you've had £5k you could have paid me but didnt?
If there's a VAT cut I'd be seeing that the same way, it's an admission that taxes are too high. The funny side of it is taxes will need to be higher in other places/later years to pay for the cut
Then I thought, you've had £5k you could have paid me but didnt?
If there's a VAT cut I'd be seeing that the same way, it's an admission that taxes are too high. The funny side of it is taxes will need to be higher in other places/later years to pay for the cut
In reality it has little or no or effect on retail customers except maybe petrol. Everything else is price pointed. It does however make businesses more profitable, so Gordon will actually get a bigger vat take as its a tax on profit at the end of the day 
Edited by cptsideways on Sunday 23 November 09:35
Minimal help if you trade with Joe Pubic, sod all use if you trade with other VAT registered companies (when it was never a problem anyway) who trade on a wider basis - what these companies need is customers with money to spend, marginally reduced vatting can't help much but it looks good in the nulabia friendly press. Which is why they'll do it if they do it.
Adrian W said:
someone needs to explain how this will help to me as all companies collect VAT for the goverment (for free) and then pass it on to them, of course if they said I could keep the last quarters VAT i can understand how that will help my cashflow.
Precisely, maybe they're expecting it to get floor traffic up and therefore (big 'if' here) overall spending up and overall takings up - retail?. In the big picture it's just a window dressing PR gimmick.Plotloss said:
Durruti said:
For all you conspiracy fans out there, it's interesting to note the VAT rate in the EU is 15%.
Not all of it, its 19% in France isnt it?
Plotloss said:
Durruti said:
For all you conspiracy fans out there, it's interesting to note the VAT rate in the EU is 15%.
Not all of it, its 19% in France isnt it?
I don't think it will make any difference. As said, 1% saving won't make people feel any richer and besides, the retailers will just trouser it.
andy-xr said:
On one occasion where I handed my notice in, I was flattered to hear the boss say "If you stay, we'll give you an extra £5k pa" Then I thought, you've had £5k you could have paid me but didnt?
Spot the employee! It's no different from you going into a store and haggling a plasma TV down to £700 - then the salesman finding out you had £3K in your current account all the time... I'm sure all the shop staff will be delighted as they will no doubt have to work late into the night, just before Christmas, changing all the price tickets and reprogramming all the tills.
Will help the economy? Doubtful, won't encourage me to spend more.
Edited to say; Think about all the money companies are going to have to spend reprinting price lists. This will factor out at least some of the saving. And think of the waste from this, all from a government who keeps banging on about how green they are.
Will help the economy? Doubtful, won't encourage me to spend more.
Edited to say; Think about all the money companies are going to have to spend reprinting price lists. This will factor out at least some of the saving. And think of the waste from this, all from a government who keeps banging on about how green they are.
Edited by The Hypno-Toad on Sunday 23 November 10:01
A complete and utterly cosmetic waste of time! Aside from the cost to retailers of changing pricing, the fact remains that we have a balance of payments deficit - so we import most consumer goods etc - the 2.5% saving on vat isw a drop in the ocean against the circa 25% drop in value against major trading currencies - € and $ - talk about re-arranging the deck chairs on the Titanic! It's not even as if we've got much of a manfactruing industry left whihc can benefit from the lower value of the £..the only thing we seem to be able to export is our "service industry" expertise AKA banking.............oh wait............
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