Shops not passing on VAT cut

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It's great how you can post a multi paragraph post and he always picks just one line to address isn't it, usually the one related to the people in the thread rather than the issue being discussed

Yeah, that would appear to be the case i'm afraid.

 

[DELETED_36704]

That would be quite difficult, especially in a supermarket, as you can't take off 2.5% of the total amount as not everything in a supermarket is VAT eligable.

Difficult

Its already in place in stores, the till automatically deducts an amount from items that qualify for the VAT to be taken off and ignores the items that aren't eligible for it.

Not exactly rocket science.

 

[Surfer]

i thought the 2.5% reduction was to entice shoppers to shop but if shops dont actually pass it on then uhh whats the point of it? (nb- this has probably been mentioned)

 

[arfur]

i thought the 2.5% reduction was to entice shoppers to shop but if shops dont actually pass it on then uhh whats the point of it? (nb- this has probably been mentioned)

it can go 2 ways,
1 - the shops low prices by 2.5% in the hope that someone whos after a £5 scarf will buy it because its 12p cheaper or

2 - the shops dont pass on the savings straight away and add the extra revenue into the business bank (which could save thousands) to help save jobs and business to business purchasing.

thats the way I see it, it all seems to be a huge publicity stunt and wont achieve much in the short term.

 

[Basher]

For what? So a £29.99 item can become £29.27?

Sorry, not trying to be picky - is it me being stupid or would a £29.99 item not end up being £29.35 with the reduction in VAT?

 

[fornowagain]

Sorry, not trying to be picky - is it me being stupid or would a £29.99 item not end up being £29.35 with the reduction in VAT?

Correct

 

[Beansprout]

I went to Sainsbury's and bought a pack of cards for £2.50 today, went to the checkout and very proudly gave over my exact change, intending to walk off...only to be given 6p

 

[sbi5ar]

I went to Sainsbury's and bought a pack of cards for £2.50 today, went to the checkout and very proudly gave over my exact change, intending to walk off...only to be given 6p

now that ladies and gents is a result

 

[HangTime]

One thing which often gets overlooked I think is the cost associated with changing the VAT level at such short notice. For some companies this may be straightforward, but where I work they've had to pay us a fair amount of overtime to come in and fix the system so it could handle multiple levels of VAT (depending on when the invoice was issued).

 

[Basher]

Correct

Glad I'm not going mad! Where did £29.27 come from

 

[Tefal]

One thing which often gets overlooked I think is the cost associated with changing the VAT level at such short notice. For some companies this may be straightforward, but where I work they've had to pay us a fair amount of overtime to come in and fix the system so it could handle multiple levels of VAT (depending on when the invoice was issued).

although this could be considered an additional economic boost as certain workers have an unexpected windfall of cash to spend.

 

[Tefal]

That would be quite difficult, especially in a supermarket, as you can't take off 2.5% of the total amount as not everything in a supermarket is VAT eligable.

Lidel, are doing it

CAn;t be that hard to add -2.5% to any VAt item.