VAT about to be dropped in UK & NI

Tabnabs

"The government is expected to cut VAT by up to 2.5% in Monday's pre-Budget report as part of an emergency package aimed at kick starting the economy."

http://news.bbc.co.uk/2/hi/uk_news/politics/7744273.stm

killswitch

and why didn't our government do this? oh yea!!! cos our taoiseach is a poxy biffo who is too scared to make a daring decision and lower taxes in this credit crunch/resession

Publin

As far as I remember, the Irish Government actually RAISED VAT by 0.5% to 21.5% in the budget, which would make pretty much everything more expensive for consumers (except food, childern's clothes etc.). They may have went back on (like everything else) this since they announced it, but I don't think so. Kicks in from the start of next year I think.

Another reason to shop in the North now, it'll be even cheaper relative to the Republic if this does happen and exchange rates stay around the same level as they are now (a big IF).

EDIT: There was no change to the 13.5% rate as far as I know, only affects the 21% rate.

andrew1977

Publin wrote: »

As far as I remember, the Irish Government actually RAISED VAT by 0.5% to 21.5% in the budget, which would make pretty much everything more expensive for consumers (except food, childern's clothes etc.). They may have went back on (like everything else) this since they announced it, but I don't think so. Kicks in from the start of next year I think.

Another reason to shop in the North now, it'll be even cheaper relative to the Republic if this does happen and exchange rates stay around the same level as they are now (a big IF).

EDIT: There was no change to the 13.5% rate as far as I know, only affects the 21% rate.

Yes vat increased to 21.5% in our budget,

ongarite

While it maybe really nice for us buying stuff up north, it's suicidal economics from Brown in the UK. He doesn't care how much he borrows and how it will be paid back, he is just going to cut taxes and increase the budget deficit massively anyway.

From BBC:
But he conceded it may mean higher taxes in the longer term to pay for it.

mikemac

Sorry,noob question.

Is all food VAT free?
Post 3 suggests it is.
But I thought it was only fresh produce was Vat free.

It's a relevent question anyway if prices are going up next month.

Publin

micmclo wrote: »

Sorry,noob question.

Is all food VAT free?
Post 3 suggests it is.
But I thought it was only fresh produce was Vat free.

It's a relevent question anyway if prices are going up next month.

Have a read of this if you're interested, it explains it all pretty well. http://www.revenue.ie/index.htm?/leaflets/vat_food_drink.htm

Certain "luxury" items are taxed at 21%, like sweets, but things like meat and veg etc. are VAT free. Wasn't was a court case about Jaffa Cakes before... were they cakes or biscuits (i.e. 0% rate or not).

Guy:Incognito

ongarite wrote: »

While it maybe really nice for us buying stuff up north, it's suicidal economics from Brown in the UK. He doesn't care how much he borrows and how it will be paid back, he is just going to cut taxes and increase the budget deficit massively anyway.

From BBC:
But he conceded it may mean higher taxes in the longer term to pay for it.

Your wrong, have you not read the rants above yours? It's clear as day that Brian Cowan is an idiot and Gordan Brown a genius. How could it possibley go wrong.

snubbleste

" VAT about to be dropped in UK & NI"

Not really a bargain alert.

Tabnabs

Considering the extensive NI thread and the online purchases from the UK, I think it's worthwhile information.

But feel free to complain to the mods if you wish...

copacetic

snubbleste wrote: »

" VAT about to be dropped in UK & NI"

Not really a bargain alert.

well it could very well be considered an alert for anyone considering spending money on big ticket items. Maybe they would wait and see what happens.

RATM

Publin wrote: »

As far as I remember, the Irish Government actually RAISED VAT by 0.5% to 21.5% in the budget, which would make pretty much everything more expensive for consumers (except food, childern's clothes etc.). They may have went back on (like everything else) this since they announced it, but I don't think so. Kicks in from the start of next year I think.

You are right they did increase it by half a percent but as far as I know it doesn't kick in next year but on December 1st. Govt hitting the consumer on the Xmas rush no doubt. At this stage with the difference in VAT between here and the north and sterling taking a hammering against the euro you'd be mad not to go north especially if it was for a high end purchase like a TV or Xboxes, etc.

Burgo

well at least we can take comfort in the fact that VAT cant rise anymore here :P

jayteecork

VAT is charged on "luxury" items, and get this: TOOTHPASTE is classified as a luxury item in this country and gets hit with the VAT.

Kintarō Hattori

Stekelly wrote: »

Your wrong, have you not read the rants above yours? It's clear as day that Brian Cowan is an idiot and Gordan Brown a genius. How could it possibley go wrong.

I hope you're being sarcastic. Have you not been watching the british news in the last week or so?

Dave!

Yes, he was being sarcastic

MisterAnarchy

The title of the thread is misleading.
It should be changed to Vat to be 'reduced' not 'dropped' which would indicate Vat is being scrapped.

Del2005

jayteecork wrote: »

VAT is charged on "luxury" items, and get this: TOOTHPASTE is classified as a luxury item in this country and gets hit with the VAT.

Whatever about toothpaste. A legally required safety device, Motorcycle Helmet, is classified as being a luxury item in this country and hence chagred at 21(.5)%VAT while in the UK they are zero VAT rated. Sorry for going OT.

Mr Benevolent

To be fair, it's considered a luxury because a motorbike is considered a luxury. Not the most logical of thought processes, but it's the Irish government we're talking about here

Kintarō Hattori

Dave! wrote: »

Yes, he was being sarcastic

Fair enough, ye just can't tell sometimes!

Onikage

Kintarō Hattori wrote: »

Fair enough, ye just can't tell sometimes!

Go to Preferences > Grammer > Misc > Sarcasm Highlighting and set it to on.

witnessmenow

Slate me if you want but I think Brown was right to do this.

It isnt as simple as more tax = more money

He is trying to get more people spending in UK. If more people are buying then more people have jobs, and less people have to sign on

This would be considered one of the busiest times of the year for retail shops yeah? People were sent home from a Dunnes in Athlone today because they just weren't busy enough. How much longer are they going to be asked to come in all? When they are let they will strugle big time to get new jobs so more than likely will get the dole. Athlone is about 2 hours from a decent shopping spot in the North iirc, more and more people are going up to do the majority of there shopping because it so much cheaper. EG my Aunt and Uncle went up yesterday and spent €600, thats €600 has left the Irish economy, now you might argue that its people like them that are helping kill the economy but they reckon what they got would cost around €1000 down here, its tough to come up with a argument against that

Del2005

Confab wrote: »

To be fair, it's considered a luxury because a motorbike is considered a luxury. Not the most logical of thought processes, but it's the Irish government we're talking about here

How is a motorcycle a luxury? It's an enviromentally friendly form of transport which doesn't casue congestion and produces a lot less pollution then most other forms of transport. They also don't require huge parking places.

bmaxi

Del2005 wrote: »

How is a motorcycle a luxury? It's an enviromentally friendly form of transport which doesn't casue congestion and produces a lot less pollution then most other forms of transport. They also don't require huge parking places.

That's like asking "Why is Martin Cullen a Cabinet Minister?"
there is no rational answer to it.:)

johnnyrotten

snubbleste wrote: »

" VAT about to be dropped in UK & NI"

Not really a bargain alert.

Of course it is :rolleyes:

rubadub

Publin wrote: »

which would make pretty much everything more expensive for consumers (except food, childern's clothes etc.)

I got a cheap pair of trousers in dunnes a while back, wondered why they were so cheap, it was in the back to school section! thanks to all the fat kids these days...

Del2005 wrote: »

Whatever about toothpaste. A legally required safety device, Motorcycle Helmet, is classified as being a luxury item

There are lots of things should be exempt IMO. Exercise equipment for one, if they really do want to do something about the fat kids & adults.

Mr. Incognito

Considering the extensive NI thread and the online purchases from the UK, I think it's worthwhile information.

But feel free to complain to the mods if you wish...

If you make online purchases from the UK, Irish VAT is still applied at POE anyay so.............

ch750536

'A reduction of 2.5% would see the price of a 32in flatscreen TV fall by only around £8.50 and a new Ford Focus car by about £270.'

Savings agreed, but nothing to hang around for.

bmcgrath

Watch this space.
Rep Of Ireland will take Britain out of recession with their vat cuts. :rolleyes:
Watch EVERYONE go North.
Not that they haven't already done this...

seamus

bmcgrath wrote: »

Watch this space.
Rep Of Ireland will take Britain out of recession with their vat cuts. :rolleyes:
Watch EVERYONE go North.
Not that they haven't already done this...

The volume of people going north to shop has been ridiculously overinflated by the media. Unless I can save €100 every time I go shopping by going North, then the time and effort involved in doing it, just isn't worth it.

There are a small number of people in the North/Northeast of the Republic for whom it makes sense. It doesn't make sense to drive 1.5 hours from Dublin to Newry just to do your bloody grocery shopping.

dahamsta

Del2005 wrote: »

How is a motorcycle a luxury? It's an enviromentally friendly form of transport which doesn't casue congestion and produces a lot less pollution then most other forms of transport. They also don't require huge parking places.

It's not environmentally friendly, it produces CO2 like anything with an engine. Friendlier perhaps. The same applies to congestion, and if they were all driven the way they should be, using the same roadspace as as car, they'd cause an equivalent amount of congestions. Parking I'll give you.