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is it a good idea to pre order now due to VAT

omisnad

Active Member
well depends what they put it up to

Well assuming its going up to 20%, thats an extra 2.5% on £33 which is another 82.5p. Thus standard £39.99 priced games 'should' go up to £40.81

.....

All retailers will do is adjust the price before tax so that it still works out as £39.99 ... on the other hand, if you were to buy groceries though then yes, best order today. ;)
 

MANGABOY

Well-known Member
Well assuming its going up to 20%, thats an extra 2.5% on £33 which is another 82.5p. Thus standard £39.99 priced games 'should' go up to £40.81

.....

All retailers will do is adjust the price before tax so that it still works out as £39.99 ... on the other hand, if you were to buy groceries though then yes, best order today. ;)

Why? Foods vat free
 

omisnad

Active Member
Why? Foods vat free

Not all foods are VAT free (only 'non luxury' foods). For example, you dont have to pay vat on a digestive biscuit, but if it has chocolate on it you do. Food VAT is variable, with a maximum rate of 21% (which is the rate for bottled water btw). Also dont forget the Pringles fight with the Government as to whether it was liable for VAT.

VAT on foods info :
HM Revenue & Customs

... Anyway, this isnt a Food Bargains forum, so back on topic ........... :laugh:
 
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Goooner

Distinguished Member
Surely, they won't charge you until the ship, so it'll be at the new VAT rate anyway.
 

nheather

Distinguished Member
Surely, they won't charge you until the ship, so it'll be at the new VAT rate anyway.

Exactly what I was about to post.

Unless you pre-order from Argos who charge you as soon as you put the pre-order in.

Cheers,

Nigel
 

Miss Chief

Distinguished Member
Will be interesting to see. When VAT was cut i didn't see any online or shop retailer reduce their prices at all. Apparently it's not law to pass a cut on. I have my cynical hat on when i say they'll probably raise prices by £1 giving them a few extra pence profit.
 

ProphetRNG

Well-known Member
You will not see the VAT increase on most things as the retailers will just lower the price to cancel it out.

Once one big chain does it the rest will follow, will be Tesco, M&S or Asda that will kick it off.
 

steford

Active Member
Is it a good idea to get pre orders in tonight as VAT will be going up tomorrow

It might be a good idea to sell any DVDs you've invested in and if you're a higher rate taxpayer before midnight ;-)
 

Ste7en

Distinguished Member
Besides, we already pay 20% at some stores already.

The ones that didn't lower VAT but increased it when it went back up to 17.5% :mad:
 

nheather

Distinguished Member
Besides, we already pay 20% at some stores already.

The ones that didn't lower VAT but increased it when it went back up to 17.5%

Not sure I agree. I understand exactly where you are coming from but the real truth is that we shop around and buy deals.

RRP of game is £40, £34 nett and £6 VAT (17.5%)
This will cahnge to £40.80, £34 nett and £6.80 VAT (20%)

But as a community we hardly ever pay £40. Instead we lookout for special deals and offers, paying £25 or less.

So you could look at it this way - on a £25 purchase we currently pay about £3.70 VAT, £2.30 less than the government was expecting to get against RRP - or based on want the government was hoping to receive, we are only paying the equivalent of 11% VAT.

Shopping around is sill going to exist, so my advise would be to forget all about VAT - it's not that important to the buyer - buy based on the total price - if you are happy then go for it, if you aren't then don't buy.

The one thing you can rely on is that competitive pricing will still exist and bear no relation to RRP.

And remember, that whaen we buy all those £17.99 games from HMV, Play, Amazon (starfish) you aren't paying ANY VAT and that will continue. Actually, I'm surprised that the budget didn't shut that behaviour down.

Cheers,

Nigel
 
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nheather

Distinguished Member
Another example was on the news this morning. They were getting excited about chocolate digestives attracting VAT but plain digestives not.

They were saying that it was confusing what has VAT on and what doesn't and that supermarkets should differentiate between them with different coloured price labels.

To me this is losing the plot and getting too bogged down by VAT.

Surely, you should buy chocolate biscuits based on your desire for them and that you are happy to pay the asking price of 80p rather than 50p for plain.

If you are happy with the price, why is a knowledge of whether you are paying VAT or not important - unless you are on some personal determined vendetta to contribute as little tax as possible.

The one thing that does irritate me though, is when they keep rolling out the indisputable fact that the UK has one of the lowest VAT rates in Europe. On it's own this isn't enough for me, if they are to keep making comparisions I would prefer that they include all taxes - income, NI, VAT, council, capital gains, fuel\alcohol duty - if after that we are still cheap within Europe then fair cop.

Cheers,

Nigel
 
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nheather

Distinguished Member
As I said above there are two game prices. The RRP and the price that most of us pay.

If you sell at RRP at £40 or £50 then I reckon there is plenty of profit to absorb the VAT increase.

But the reality is that we don't often pay £40 and £50, we buy from sellers who are prepared to cut into their margin in order to win our custom.

So we buy at £25 or £30 or even lower.

Whether they will be able to absorb the VAT increase is another matter.

So whilst it is easy to say that RRP won't increase, this does not mean that the price we pay doesn't go up.

Also remember that the sub £18 games we buy from the channel islands don't have VAT on them anyway.

Cheers,

Nigel
 

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