VAT Reduction

[Jo34]

However, as of 8.30am this morning all QVC prices still have the same prices on them as yesterday (at least for Smashbox anyway)

I've just looked as well and noticed they haven't put the prices down.

Anyway I phoned CS and they said that they haven't put them down yet, as she said as you can appreciate we have loads and loads of items on our website and it will take a few days to change the prices, so if we're lucky they may have put the VAT down by the end of the week strange that companies that sell as much as them can manage to put the prices down from today if not the weekend.

So have decided not to buy anything from them until they do, not that it will be a big difference but just by principle.

 

[Rudolf]

I've just looked as well and noticed they haven't put the prices down.

Anyway I phoned CS and they said that they haven't put them down yet, as she said as you can appreciate we have loads and loads of items on our website and it will take a few days to change the prices, so if we're lucky they may have put the VAT down by the end of the week strange that companies that sell as much as them can manage to put the prices down from today if not the weekend.

So have decided not to buy anything from them until they do, not that it will be a big difference but just by principle.

Does that mean they have infact put their profits up by the difference until they change the prices as sure is sure they will not be paying the 17.5 rate from today???

 

[Jo34]

yes exactly which is why I won't buy from them cheeky b**tards

 

[Rudolf]

yes exactly which is why I won't buy from them cheeky b**tards

Me either - that almost sounds illegal and is definitely immoral.

 

[fulhamphil]

It may be immoral, but it certainly is not illegal. No business is obliged to pass on the VAT reduction to the customer.

The longer QVC can hold off passing on the reduction, the longer they will enjoy an increased profit margin. :53:

I shall also be holding off from making any further purchases from them. :10:

 

[Themroc]

On all my QVC label/delivery notes, VAT has alway been split out. I am sure that they would only need to change one field on their computer from 17.5 to 15 for it to work. They may have an issue that the pre-printed part has VAT at 17.5%. They could used the comments box to state that VAT is now 15%.

It looks like these companies that are not reducing VAT are just using it to make more profit.
I would put money on it that they will not be paying their suppliers 17.5% VAT, but 15%.
So they should realy pass this on.

 

[Rudolf]

It may be immoral, but it certainly is not illegal. No business is obliged to pass on the VAT reduction to the customer.

The longer QVC can hold off passing on the reduction, the longer they will enjoy an increased profit margin. :53:

I shall also be holding off from making any further purchases from them. :10:

Interesting. Would it work the other way round? Wonder what might have happened had VAT been increased?

 

[livelovelaugh]

it may be that qvc will creit everyone with the difference once everything has settled down...however, the only company i have heard of so far that has refused to pass on the saving is sky...i wonder if, being a us company they thought less of the uk consumer and more of their profits and if qvc will go the same way....not trying to be controversial, btw...i have a very high opinion of the us, businesses that come out of there, etc....i just think it is such a minimal saving to the consumer but was put forward by the government at a really tricky time, and regardless of one's politics, it is clear we need to work together to resolve this to avoid as much discomfort for all of us...if we as the consumer are doing our bit, the government is trying to make it as easy as possible for us, the least any company can do is show willing...i hope qvc will be a little generous...

 

[Nicky-j]

It may be immoral, but it certainly is not illegal. No business is obliged to pass on the VAT reduction to the customer.

:10:

Precisely; the Government has lowered the VAT on the products, ie the amount that the retailer will have to pass on at the end of the quarter/year etc. How quickly, or whether at all, any retailer chooses to lower prices to take account of this is nothing to do with that. Just like bus companies raise fares when oil prices rise but never drop them again when the price comes down!

I bet many retailers will not do this, I think, given what QVC CS said, that QVC will, but they may not choose to do this with some US items since the exchange rate means they are costing everyone a lot more nowadays.

 

[I Love Chocolate]

Also on the front page:

Just to let you know we've adjusted our prices in light of the changes to VAT... so we hope you enjoy the extra savings.[/QUOTE]

This appears to have gone now so assume they changed their minds!!

 

[Nicky-j]

Incidentally, the Next website states that, while it is displaying prices online as the same as yesterday, the VAT deduction will be applied once you add items to the shopping cart.

 

[rosey]

Precisely; the Government has lowered the VAT on the products, ie the amount that the retailer will have to pass on at the end of the quarter/year etc. How quickly, or whether at all, any retailer chooses to lower prices to take account of this is nothing to do with that. Just like bus companies raise fares when oil prices rise but never drop them again when the price comes down!

I bet many retailers will not do this, I think, given what QVC CS said, that QVC will, but they may not choose to do this with some US items since the exchange rate means they are costing everyone a lot more nowadays.

They have already increased the cost of the stuff that comes from the US to allow for the 25% esxchange difference - the Smashbox for example has gone up dramatically in the last few months -so another 2.5 ish% is really taking the p***.

 

[boffy]

i was in primark it was funny seeing odd prices £11.91 and so on. funnily enough everything seems a lot cheaper looking at the digits like that. even though the reality is its not a lot cheaper.

 

[JoolzS]

The way to calculate what a new price should be is take the original price and divide it by 1.175 and then multiply the new number by 1.15.

I posted on one of the other forums that IW is passing on the difference - yesterday they had an item that would normally sell at £19.99 selling at £19.56* and I noticed a couple of other items reduced by a pound, which was a little more than a 2.12% reduction and a day early.

*19.99 / 1.175 = 17.01
17.01 * 1.15 = 19.56.

Julie