Discussion
The OH has just come in from shopping, however she has been told in a couple of shops that they are still charging 17.5% VAT.
She questioned them on whether the unit price has gone up and VAT was still 15%, one of the shop staff said that they were told via a head office email to put the prices back to include VAT @ 17.5%
This can't be legal?
She questioned them on whether the unit price has gone up and VAT was still 15%, one of the shop staff said that they were told via a head office email to put the prices back to include VAT @ 17.5%
This can't be legal?
I'm not sure if there's any legality to the whole thing, IIRC it was asked that retailers pass the savings on as soon as possible. Fair few places ignored that as it was too much trouble and went for the discount at till/invoice option
Which makes you wonder, other than competition whats to stop people sticking 30% VAT on, giving HMRC 15% and pocketing the difference
Which makes you wonder, other than competition whats to stop people sticking 30% VAT on, giving HMRC 15% and pocketing the difference
andy-xr said:
I'm not sure if there's any legality to the whole thing, IIRC it was asked that retailers pass the savings on as soon as possible. Fair few places ignored that as it was too much trouble and went for the discount at till/invoice option
Which makes you wonder, other than competition whats to stop people sticking 30% VAT on, giving HMRC 15% and pocketing the difference
One of the items, she has bought in the past few weeks and had the discounted price, today she noticed the price had gone up since last week, and enquired why.Which makes you wonder, other than competition whats to stop people sticking 30% VAT on, giving HMRC 15% and pocketing the difference
Retailers cannot actually charge VAT at 17.5% since 1 December. However, they are under no legal obligation to reduce the VAT inclusive retail price to customers.
So, an item that was on sale at £117.50 on 30 November 2008, may still be on sale at £117.50 now. However, the retailer would have returned £17.50 VAT to HMRC under the old rate. Now the VAT returned will be £15.33.
The shop assistant was incorrect to say what they said.
So, an item that was on sale at £117.50 on 30 November 2008, may still be on sale at £117.50 now. However, the retailer would have returned £17.50 VAT to HMRC under the old rate. Now the VAT returned will be £15.33.
The shop assistant was incorrect to say what they said.
The shop can sell the product for what it likes regardless of the VAT rate.
It only becomes illegal if you get a receipt/invoice with VAT charged at 17.5% on it, as if you are eligible to claim the VAT back you wouldn't get 17.5% so it's kind of fraudulent.
It's quite possible that the shop has put it's prices back to price points after temporarily reducing for the VAT change, and just stupid shop assistants who don't understand/know what they are talking about confusing the issue.
-edited for typo-
It only becomes illegal if you get a receipt/invoice with VAT charged at 17.5% on it, as if you are eligible to claim the VAT back you wouldn't get 17.5% so it's kind of fraudulent.
It's quite possible that the shop has put it's prices back to price points after temporarily reducing for the VAT change, and just stupid shop assistants who don't understand/know what they are talking about confusing the issue.
-edited for typo-
Edited by byhff on Monday 22 December 18:44
Eric Mc said:
Retailers cannot actually charge VAT at 17.5% since 1 December. However, they are under no legal obligation to reduce the VAT inclusive retail price to customers.
So, an item that was on sale at £117.50 on 30 November 2008, may still be on sale at £117.50 now. However, the retailer would have returned £17.50 VAT to HMRC under the old rate. Now the VAT returned will be £15.33.
The shop assistant was incorrect to say what they said.
Yes, but the item was £115 last week and is now £117.50. If the reciept says 17.5% vat surely there is an issue?So, an item that was on sale at £117.50 on 30 November 2008, may still be on sale at £117.50 now. However, the retailer would have returned £17.50 VAT to HMRC under the old rate. Now the VAT returned will be £15.33.
The shop assistant was incorrect to say what they said.
onlynik said:
Eric Mc said:
Retailers cannot actually charge VAT at 17.5% since 1 December. However, they are under no legal obligation to reduce the VAT inclusive retail price to customers.
So, an item that was on sale at £117.50 on 30 November 2008, may still be on sale at £117.50 now. However, the retailer would have returned £17.50 VAT to HMRC under the old rate. Now the VAT returned will be £15.33.
The shop assistant was incorrect to say what they said.
Yes, but the item was £115 last week and is now £117.50. If the reciept says 17.5% vat surely there is an issue?So, an item that was on sale at £117.50 on 30 November 2008, may still be on sale at £117.50 now. However, the retailer would have returned £17.50 VAT to HMRC under the old rate. Now the VAT returned will be £15.33.
The shop assistant was incorrect to say what they said.
sleep envy said:
isn't it date of invoice which dictates which rate of VAT they levy?
Mostly, but if its for services that were carried out in November but invoiced in December then invoice at 17.5% not 15%.If you want more info then I've got a summary guide from HMRC that I could bring tomorrow.
Eric Mc said:
onlynik said:
Eric Mc said:
Retailers cannot actually charge VAT at 17.5% since 1 December. However, they are under no legal obligation to reduce the VAT inclusive retail price to customers.
So, an item that was on sale at £117.50 on 30 November 2008, may still be on sale at £117.50 now. However, the retailer would have returned £17.50 VAT to HMRC under the old rate. Now the VAT returned will be £15.33.
The shop assistant was incorrect to say what they said.
Yes, but the item was £115 last week and is now £117.50. If the reciept says 17.5% vat surely there is an issue?So, an item that was on sale at £117.50 on 30 November 2008, may still be on sale at £117.50 now. However, the retailer would have returned £17.50 VAT to HMRC under the old rate. Now the VAT returned will be £15.33.
The shop assistant was incorrect to say what they said.
A well known high street shop too. Maybe credit crunch is hurting them?
spikeyhead said:
sleep envy said:
isn't it date of invoice which dictates which rate of VAT they levy?
Mostly, but if its for services that were carried out in November but invoiced in December then invoice at 17.5% not 15%..
pdV6 said:
Yes read that yesterday.Gassing Station | The Pie & Piston Archive | Top of Page | What's New | My Stuff