VAT Decrease

Nollog

How about a name and shame on companies not passing on the VAT decrease.

For instance, Komplett.ie shows a mark down of 0.41-0.42% in the shopping lists I had since last year.
It's only 0.09ish% but it's a 0.09ish% profit for them at our expense.

Might be more Rip-off Ireland, but it's still a consumer issue.

Share what you've found in your calculations since yesterday.

daymobrew

The 0.41% figure is correct.

Previous VAT was 21.5%. New rate is 21% so an item that was e1215 is now e1210 (1000 * 1.215 and 1000 * 1.21)

Verbose maths for clarity:
1210 / 1215 * 100 = 99.59%
100% - 99.59% = 0.41%
Using that figure:
1215 * 99.59% = 1210.

dudara

A 0.5% decrease in the VAT rate corresponds to a 0.41% decrease in price.

I saw posters up in M&S where they explained this in detail with a worked example.

TBH, this is better suited to Rip Off Ireland

dudara

Nollog

Ah, I see.
Consider me enumacated.

brightkane

should in a perfect world all prices be redused by 0.41% then? by all retailers?

Alun

dudara wrote: »

TBH, this is better suited to Rip Off Ireland

Or the Maths forum

GerardKeating

brightkane wrote: »

should in a perfect world all prices be redused by 0.41% then? by all retailers?

Maybe, maybe not.

I know some absorbed the VAT increase last year, so since they did not pass on the increase, it is unreasonable to expect them to give the decrease..

rubadub

brightkane wrote: »

should in a perfect world all prices be redused by 0.41% then? by all retailers?

In some places the process & administration required to reduce by 0.41% might end up costing more than that to implement -and therefore you could expect prices to increase to cover this soon after. I know where I work it would cost a fortune to redo all the brochures, price lists, spare parts list, the entire accounts system has to go down and be rebooted when stuff like this happens, so there is downtime for anybody using the computer systems.

You will get some companies who will still do it to appear to be passing it on, but will probably increase prices soon after. I do not like the thought of this, just as I hate the thought of companies squandering money on removing sterling price tags on dual priced items -simply to keep the ignorant moaning gobsh!tes pleased. The cost of the staff needed to hide prices from these fools is no doubt passed onto the consumer.

ScouseMouse

GerardKeating wrote: »

Maybe, maybe not.

I know some absorbed the VAT increase last year, so since they did not pass on the increase, it is unreasonable to expect them to give the decrease..

I absorbed it as it would have taken to long and be to expensive to change about four thousand prices.

Accordingly, I will not be changing my prices this time either.

ScouseMouse

brightkane wrote: »

should in a perfect world all prices be redused by 0.41% then? by all retailers?

YES

In a PERFECT world they should be. However its not a perfect world. We have economic realities to consider.

ED 209

The costs of reducing the prices by such a tiny amount would cancel out any savings from a consumer's standpoint.

We should have a VAT rate of 15% the EU minimum. If it wasn't for the EU tax regulations we should have a VAT rate of 0%.

Colonel Sanders

I always assumed most retailers absorbed the .05% increase last year so won't adjust now?

wmpdd3

I have spent the last week changing 5000 health and beauty prices in Tesco. Most items are about €2.00 so they decreased by 0.02cent. torture!

ejmaztec

ED 209 wrote: »

The costs of reducing the prices by such a tiny amount would cancel out any savings from a consumer's standpoint.

We should have a VAT rate of 15% the EU minimum. If it wasn't for the EU tax regulations we should have a VAT rate of 0%.

What's the point of inventing a "tax" that's nil %?

mcaul

How many companies added the 0.5% when it rose to 21.5% - very very few.

It was in effect a tax on business as except for higher price items and specific items such as cigs & petrol, it would have been too difficult to price into goods.

Did any shop rise the price of an item from €39.99 to €40.03? or €49.99 to €50.04?

So you will find very few retailers dropping 0.41% off their prices because it wasn't added in the first place.

ballsymchugh

the m4 toll rose 10c to pass the vat increase onto the motorist. it's early on a saturday (for me anyway) but when the toll was 2.80, the increase due to vat as was claimed is a tad more than 0.5%.
i'm not holding my breath that they'll pass on the reduction!