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VAT Reduction

Community Veteran
Posts: 1,699
Registered: ‎30-07-2007

Re: VAT Reduction

Quote from: alanb
I think the difficulty of changing price tickets and menus is a red-herring. There is nothing stopping retailers sticking a sign on their shelves or labels on their menus pointing out that displayed prices still include the old rate of VAT and that the final bill will be calculated with the reduced rate at the checkout.

Sorry alanb, but the law requires that pricing should be complete, and that essentially, shops must display the price that the consumer will pay.  What you're suggesting is the same as shops displaying prices that don't include VAT at all, or some other charge that must be paid.  That practice is illegal in the UK.  I know that in America, for example, when buying goods, you need to mentally add on purchase tax.  You can't price goods like that over here.  Whether it's allowed in other parts of Europe, I don't know.
John
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Registered: ‎11-01-2008

Re: VAT Reduction

i thought the price was an invitation to treat and that if there is a mis-price the shop doesn't have to sell you it at that price.
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Community Veteran
Posts: 1,699
Registered: ‎30-07-2007

Re: VAT Reduction

That's also true adiewoo.  If the shop makes a mistake, they are entitled to say that those goods aren't for sale, until the error has been corrected.
This situation is made easier by the fact that the price to be paid would be less. Certainly a rise in VAT would definitely require a change to all price tickets (unless the government passed legislation allowing a derogation).  A drop in price may be better received, but it's an opportunity for unscrupulous traders to overcharge during the confusion, and will almost certainly lead to problems.  That, along with the fact that businesses could charge exactly the same, and just reduce the tax element going to the government, and increase their own profit, is what makes the whole VAT thing a daft idea.
John
Community Veteran
Posts: 6,735
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Registered: ‎02-02-2008

Re: VAT Reduction

This is all getting rather silly and too technical.  Crazy
The reality is that if a shop puts clear signs up explaining wherever they are on pricing no-one is being misled and no-one would manage to bring a complaint to Trading Standards (let alone a prosecution).
As has been said, a price label is an "invitation to treat" and if the final offer at the till isn't acceptable you just walk away.
After all you can go to the till with goods priced at £20 and say - how about £10 for that lot?
People are just looking for problems when in reality most of it is quite easily dealt with.  Wink
itsme
Grafter
Posts: 5,924
Thanks: 1
Registered: ‎07-04-2007

Re: VAT Reduction

From HMRC website, I can't see takeways rushing to reprint their menus by Monday. Also FTP traffic will be high on Sunday as all the online shops update their prices  Grin
Quote
Prices in retail shops
Prices advertised to the public in ordinary retail shops include VAT. No tax will be added to the price when you pay. This is a legal requirement.
Prices in advertisements, catalogues and price lists
Products advertised in outlets, magazines, on the Internet, or shown in catalogues, price lists and other literature may be aimed at the consumer, businesses, or both. If they're only meant for the general public, they'll show you a price including VAT. This is a legal requirement.
If they're aimed at both consumers and businesses, they will usually show a VAT inclusive price, but may also show a price without VAT. The VAT inclusive price must be given equal prominence, but read carefully to make absolutely certain you understand what price you'll pay.
Prices aimed only at businesses are usually shown with no VAT included. VAT will be charged on top of the price shown

A friend of mine several months ago pulled up a company doing HIP's as their price list was excluding VAT. As HIP's packs are normally sold to a home owner and therefore non-business the price must include VAT. The company in question was completely ignorant of the legal requirement.
pierre_pierre
Grafter
Posts: 19,757
Registered: ‎30-07-2007

Re: VAT Reduction

@ HP  for info it is open knowledge - Hulls is an Essex Trading Standards Officer
Community Veteran
Posts: 18,933
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Registered: ‎12-08-2007

Re: VAT Reduction

I really don't understand what all the fuss is about regarding repricing.  On TV yesterday the CEO of John Lewis said they had already repriced 90,000 items and would have the job complete by Friday.  I worked in retail and remember that our repricing took about a day to do with all staff involved.
alanb
Grafter
Posts: 459
Registered: ‎24-05-2007

Re: VAT Reduction

I thought the law provides for this situation by allowing a general notice to be displayed for a transition period after a tax rate change, so price indications do not have to be changed immediately.