VAT Reduction

[rosey]

Has qvc reduced its prices to reflect the decrease yet - I havent heard them mention it and the prices do not seem to reflect this - most of the high street and online shops have already - or are they trying to hold out till the last minute???
:SHOCK:

 

[Andamooka]

I don't think anyone 'has' to do it til the new year. Knowing QVC they will probably never change, just hike up the price after a week of 'ohhh look at our VAT sale on stuff we can't shift'

 

[Just Beauty Direct]

In fairness to QVC the VAT reduction is not due to take effect until tomorrow.

All that the larger companies are doing at the moment is having a 2.5% sale as until tomorrow the VAT they pay on all purchases is still 17.5%.

The basis of VAT is a sales tax, so all retailers pay VAT on their purchases (or when they import the goods) at 17.5%. they then charge the purchaser 17.5% of the total selling price and when they send the 17.5% off at the end of each accounting period, they deduct the original 17.5%.

That's how it works.

Until tomorrow, the government will still demand its 17.5% on all sales.

As our software and accountancy systems are set up to deal with VAT separately (and you see the amount of VAT charged on the invoice - as by law you should do, the best way for us to do it, is to reduce the price accordingly from midnight tonight, which is what it has all been set to do.

QVC are a huge, reputable company and I have no doubt that they will reduce the VAT charge appropriately.

I think it is a bit unfair to complain they haven't done so already.

At the moment what some people see as 'generosity' is just a sale by another name.

 

[Calvin]

That's cleared things up for me Jayne, thank you. I was tempted to do a bit of internet shopping over the weekend but I'll hold off until tomorrow.

 

[rosey]

I wasn't complaining that they 'hadn't done so' - I just would have thought that as most of the big retailers had been generous to their customers that qvc might have been kind enough to do the same - I believe even the supermarkets have reduced their prices already. After all it is only a day or so early.

 

[Clare]

Liz Earle has already reduce her prices, will wait and see if QVC does!

 

[Honeybunny]

I wasn't complaining that they 'hadn't done so' - I just would have thought that as most of the big retailers had been generous to their customers that qvc might have been kind enough to do the same - I believe even the supermarkets have reduced their prices already. After all it is only a day or so early.

Wouldn't kill them would it when you look at their profits, as a little thankyou to all us loyal saps who continue to shop with them. I reckon they may make the announcement tomorrow but won't say anything till then cos it might affect sales today!

 

[Just Beauty Direct]

That's cleared things up for me Jayne, thank you. I was tempted to do a bit of internet shopping over the weekend but I'll hold off until tomorrow.

Definitely - if the store is VAT registered then the prices should all come down. And every little helps

 

[Just Beauty Direct]

Wouldn't kill them would it when you look at their profits, as a little thankyou to all us loyal saps who continue to shop with them. I reckon they may make the announcement tomorrow but won't say anything till then cos it might affect sales today!

Could well be right - and it is noticeable that the VAT saving on todays TSV would be not insubstantial - 2.5% off £800 would pay for the postage costs wouldn't it?

 

[Just Beauty Direct]

I wasn't complaining that they 'hadn't done so' - I just would have thought that as most of the big retailers had been generous to their customers that qvc might have been kind enough to do the same - I believe even the supermarkets have reduced their prices already. After all it is only a day or so early.

Hi Rosey - I apologise.

When I went out yesterday, every store I saw on the high street had a sale - Homebase 10% off (plus the Vat) Woollies - everything I saw in the kiddies clothing was half price (although I am not sure anyone would have paid full price for the items)

So I just saw it as another sale tactic really - even so - it is still less profit for the retailer so you are right in that it is still a reduction.

 

[Nikkidolphinangel]

Liz Earle has already reduce her prices, will wait and see if QVC does!

How much have the prices changed by then? Just been on there but i cant remember the original prices! Thanks

 

[Clare]

I ca't either lol but, when I added somthing to my basket there was a message below the items saying:

We've adjusted all our prices due to the new lower rate of VAT. Please note our postage rates remain the same.

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.

 

[Nikkidolphinangel]

I ca't either lol but, when I added somthing to my basket there was a message below the items saying:

We've adjusted all our prices due to the new lower rate of VAT. Please note our postage rates remain the same.

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.

Ha ha, i guess we will never know then?!:18:

I saw that message too thanks!

 

[rosey]

Hi Rosey - I apologise.

When I went out yesterday, every store I saw on the high street had a sale - Homebase 10% off (plus the Vat) Woollies - everything I saw in the kiddies clothing was half price (although I am not sure anyone would have paid full price for the items)

So I just saw it as another sale tactic really - even so - it is still less profit for the retailer so you are right in that it is still a reduction.

No problem, I was just very disappointed that as most of the high street and on line retailers had given us this small discount (less than 2.5%) it would have been nice if qvc could have been kind to their loyal customers.

Apart from lots of easy pay, which is not a discount, they are doing nothing to help in the 'credit crunch' - in fact their prices are increasing day by day (they would say due to the dollar exchange rate - but I think the increase is more than 25%)
:SCREAM:

 

[jacaranda]

I thought P&P also attracted VAT, so that should be going down too. But if I'm wrong, someone will no doubt let me know:1:

 

[Jo34]

I went to LE's shop yesterday and OH said they put the VAT done then, I must admit i didn't notice myself as the price lists on the shelves was the old price but just had a look at the site and for instance superskin moisturiser as gone down 50p and superbalm done 25p etc

 

[Just Beauty Direct]

In fairness to QVC the VAT reduction is not due to take effect until tomorrow.

All that the larger companies are doing at the moment is having a 2.5% sale as until tomorrow the VAT they pay on all purchases is still 17.5%.

The basis of VAT is a sales tax, so all retailers pay VAT on their purchases (or when they import the goods) at 17.5%. they then charge the purchaser 17.5% of the total selling price and when they send the 17.5% off at the end of each accounting period, they deduct the original 17.5%.

That's how it works.

Until tomorrow, the government will still demand its 17.5% on all sales.

As our software and accountancy systems are set up to deal with VAT separately (and you see the amount of VAT charged on the invoice - as by law you should do, the best way for us to do it, is to reduce the price accordingly from midnight tonight, which is what it has all been set to do.

QVC are a huge, reputable company and I have no doubt that they will reduce the VAT charge appropriately.

I think it is a bit unfair to complain they haven't done so already.

At the moment what some people see as 'generosity' is just a sale by another name.

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

 

[Nicky-j]

No problem, I was just very disappointed that as most of the high street and on line retailers had given us this small discount (less than 2.5%) it would have been nice if qvc could have been kind to their loyal customers.


:SCREAM:

As you say, the reduction is not of 2.5 percent anyway since the old VAT was 17.5 percent of the original price, you have to take off 17.5 percent, then calculate 15 percent of that price. So many people I've seen/heard saying they will save 2.5 percent! But they won't will they? There must be a formula for doing it directly but since it took me two goes to get my Maths O Level, I have absolutely no idea what it is!

 

[peggie]

As you say, the reduction is not of 2.5 percent anyway since the old VAT was 17.5 percent of the original price, you have to take off 17.5 percent, then calculate 15 percent of that price. So many people I've seen/heard saying they will save 2.5 percent! But they won't will they? There must be a formula for doing it directly but since it took me two goes to get my Maths O Level, I have absolutely no idea what it is!

Your'e right Nicky-j, the amount VAT in an price is calculated by multiplying the total by 3/23, e.g. if an item costs £11.50 the formula is 11.5*3/23 = 1.5, i.e. £1.50 VAT (the formula for 17.5% was 7/47. You can use this on the old price to get the selling price of the item then add the new VAT rate on to get what the price should be as of today).

HTH,
Peggie xx

 

[Nicky-j]

Your'e right Nicky-j, the amount VAT in an price is calculated by multiplying the total by 3/23, e.g. if an item costs £11.50 the formula is 11.5*3/23 = 1.5, i.e. £1.50 VAT (the formula for 17.5% was 7/47. You can use this on the old price to get the selling price of the item then add the new VAT rate on to get what the price should be as of today).

HTH,
Peggie xx

Excuse me, was that in English?:32:
Personally I'm glad they've put it down to 15 percent - it's easy to calculate - the VAT amount is now one tenth, plus five percent ie half of that tenth! They did teach me that in school!