QVC - No Vat Reduction?
- Thread starter alan6012
- Start date
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sheepdog
VIP Herder
- Joined
- Jun 24, 2008
- Messages
- 350
Having read the Tax docs on the link above...... As I read it, any orders invoiced and dispatched before 1 Dec 08 is liable for the 17.5% rate, orders after that are liable for the 15% rate. So if you ordered anything before the 1st Dec and wasn't sent out of the warehouse until the 2nd Dec then you should be charged at 15%. Oh, and you can claim a refund for the difference!
What is probably getting confused in the discussion is how the language describing prices is used. Although the VAT rate has gone down, the basic price of the item hasn't changed - VAT is charged on top of this for the IR. Therefore it is quite legal to increase the price of the basic item and charge the new rate of VAT which means you don't see any difference. Effectively, retailers haven't actually lost anything but in fact can gain. It's a bit of a joke when you look into it as the government probably gets on average, exactly the same amount of VAT. But if it makes the voters feel good....
However, the only profit is realised when the item is actually sold so in a way, those who don't perceive to have made the change will lose out.
What is probably getting confused in the discussion is how the language describing prices is used. Although the VAT rate has gone down, the basic price of the item hasn't changed - VAT is charged on top of this for the IR. Therefore it is quite legal to increase the price of the basic item and charge the new rate of VAT which means you don't see any difference. Effectively, retailers haven't actually lost anything but in fact can gain. It's a bit of a joke when you look into it as the government probably gets on average, exactly the same amount of VAT. But if it makes the voters feel good....
However, the only profit is realised when the item is actually sold so in a way, those who don't perceive to have made the change will lose out.
scaryspice
Registered Shopper
I have received an item from QVC today that I ordered on Monday 1 Dec, the invoice dated is 2nd December and shows vat at 15% - don't think item has been reduced or increased in price. I have checked some items that I have already have and they haven't been reduced on the website.
