QVC - No Vat Reduction?

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I've had someone from QVC crawling all over my site today, obviously checking to see if they would be included on it.

I've now left them a message seeing if they want to respond.

I've also set a link to this website.

http://www.vatrats.co.uk/
 
RedorDead said:
I contacted QVC about the VAT Reduction. This was the reply they gave.......


"Thank you for contacting QVC UK.

We have yet to determine our exact pricing structure since the VAT change, currently our overall prices remain unchanged however they will be adjusted over time and as soon as we can.

If we can provide any other assistance, please do not hesitate to contact QVC UK."

what b****cks !
Click to expand...


I have now emailed qvc and told them that their explanation is unacceptable and I want to take it to a higher level...watch this space.
 
Tabs said:
Wasnt the VAT reduction legal/compulsory??
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Nope. But the tax raised on petrol was. Welcome to government logic!
On the comments regarding the ease of changing a figure to reflect the new non-compulsory VAT rate. It isn't easy. Some systems are difficult to change as they have, sadly, been hard-coded with the rate. Changing that takes time. The ones who have passed on the rate change probably have better systems in place (more modern) whilst some will ride out the next 13 months. Those are the ones who should be taking action for 2010 when VAT will go up above 17.5%.

There are probably a few factors involved which we are not aware of that means that we will not see any changes just yet. For example, QVC buy in advance and in bulk, on top of which probably have already paid duties to HM Government at the old rate. So unless they want to record a large loss to the shareholders, they will charge the rate they were charged. Of course, in due course prices should come down. Don't forget, HM Government will receive all the 17.5% charged to us.
 
sheepdog said:
Nope. But the tax raised on petrol was. Welcome to government logic!

There are probably a few factors involved which we are not aware of that means that we will not see any changes just yet. For example, QVC buy in advance and in bulk, on top of which probably have already paid duties to HM Government at the old rate. So unless they want to record a large loss to the shareholders, they will charge the rate they were charged. Of course, in due course prices should come down. Don't forget, HM Government will receive all the 17.5% charged to us.
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Eh? What QVC may have paid for goods is neither here nor there. From 1/12 QVC has to account for VAT at 15% rather than 17.5%. By not passing on the VAT reduction to the customer QVC has in effect increased it's profit margin - simple as that.
 
fulhamphil said:
Eh? What QVC may have paid for goods is neither here nor there. From 1/12 QVC has to account for VAT at 15% rather than 17.5%. By not passing on the VAT reduction to the customer QVC has in effect increased it's profit margin - simple as that.
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You missed my point, QVC has paid tax on goods to HM Government at the higher rate beforehand. They do not have to reduce the VAT rate on stuff the government has already taken, which is what you are all expecting. There are quite a number of tax rules we are not told about and hence why it was not made compulsory.

In either case, QVC don't actually make a profit on VAT difference. As I said, it is taken directly by the government so unless the actual price pre-VAT has changed, then that should be examined. As of yet, no-one has actually confirmed this, only the VAT rate has remained the same (and if any one has repeat orders of an item, let us know if this has happened).

If anyone can show me a link to how this VAT change actually works in collecting tax, I'll re-evaluate my posts.
 
the Goverment set vat rate and that is the amount that by law should be charged and if they charge 17.5%they are breaking the law the best way round it is report them to custom and excise
lizz
 
justlizz said:
the Goverment set vat rate and that is the amount that by law should be charged and if they charge 17.5%they are breaking the law the best way round it is report them to custom and excise
lizz
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But it is not law, it is not compulsory.

Ok, have a read of all the documents here: http://www.hmrc.gov.uk/pbr2008/measure1.htm and THEN we should all be in a better position to comment. It is actually interesting reading for a change.
 
Last edited:
Yes they claim back vat but also it is worked out what you pay in vat goes against what you charge in vat and with them they would have to pay I think, I know I do every quarter and it is no small cheque the only time my cheque goes down is when I buy a new puter or truck
lizz
 
Sheepdog they are vat regisered they must do the changes I have the letter from HM Revenue and customs and they have said they will go light for the first 3 months on errors but after that no chance
lizz
 
justlizz said:
Yes they claim back vat but also it is worked out what you pay in vat goes against what you charge in vat and with them they would have to pay I think, I know I do every quarter and it is no small cheque the only time my cheque goes down is when I buy a new puter or truck
lizz
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Hi justlizz, what I am getting at is if they paid 17.5% they would get 17.5% back, I know that it is almost certain that they would have to pay more VAT than they claim back. I just don't understand what sheepdog is saying.

Years ago I used to do my hubby's VAT return so am assuming it's still the same. He charged VAT and claimed back the VAT he was charged. He didn't buy and sell goods though. He was self employed and had to be VAT registered because of his earnings. (although they didn't call it earnings lol)
 
emailed qvc they sent a message back saying, the vat will be be reduced on new items,
 
They already appear to be reducing vat as I had an item on cheque hold from Saturday and when I paid for it with my card today the price actually went down and when I asked why the CS rep said it was because of the vat reduction.
 
Waterlily yes if they pay 17.5% they claim it back
uote from notifation that I gotyou should use new vat rate for all takings that you receive on or after dec 1st except for where your customer pays for something they took away (or you delivered) before 1st Dec (eg where customers have an account with you) in this case your sales took place before 1st Dec and you must use the old rate
lizz
 
Waterlily said:
Hi justlizz, what I am getting at is if they paid 17.5% they would get 17.5% back, I know that it is almost certain that they would have to pay more VAT than they claim back. I just don't understand what sheepdog is saying.

Years ago I used to do my hubby's VAT return so am assuming it's still the same. He charged VAT and claimed back the VAT he was charged. He didn't buy and sell goods though. He was self employed and had to be VAT registered because of his earnings. (although they didn't call it earnings lol)
Click to expand...

Thats my understanding too Waterlily = although put simply of course, at the moment all retailers are making a 2.5% loss on sales - because they are now £2.5% cheaper.

Although we can claim the VAT on the purchase price back (so it was never really our money - it always belonged to HMRC), it is months (in our case up to 3 months) before that happens so although ultimately we pay less to HMRC, the current ' in the till amount' is lowered. Many businesses might find that hard.
 
BetLynch said:
Just wondered how you could tell they were from QVC?

Thanks

Bet
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They have a static IP address and show up in my log files.
They must have seen the link to my site posted on this forum earlier and
came to have a look.

They appear to have then started regularly monitoring my site, probably
looking to see if any bad comments were written about them.

From what I can gather they are passing on the VAT reductions now, so I
won't be including them on my site anyway.

If they have any sense they would have realised it's only a spoof site
anyway, as you will see if you look at number 4 of my top 10,
http://www.vatrats.co.uk/top.html :1:
 
My understanding is

The VAT change is not compulsory - the 'going easy for the first three months' is about incorrect accounting of VAT not changing the rate it is charged at.

If you look at http://www.hmrc.gov.uk/pbr2008/businessqa.pdf question 4 it clearly states it is not compulsory but they are asking retailers to pass on the reduction to help stimulate consumer spending.

As for having already bought stock Waterlilly is correct in that QVC will have paid for these items with 17.5% VAT added and they will claim that back from the government but from 1.12.08 the rate of VAT they pay to the goverment on the sales they have made is 15% so there is an increase in their actual profit (although it will lead to a shortfall for some businesses - and it is the small business that will feel the effects more in terms of cashflow).

The amount they claim (17.5%) is offset against the amount they need to pay on their sales (15%) and you just pay the difference to the government -

I always think VAT is just a good way of the government getting money and businesses doing the collecting and accounting of it for them
 

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