Apple Bumps UK Prices as VAT Rises

[firestarter]

In the U.S., Apple advertises the before-tax prices of its products, just like everyone else.

Because the tax varies from state to state - and if I understand correctly you often don't pay tax on internet purchases.

Why not advertise the pre-VAT price of its products in England?

Because all of the UK (not just England) has the same tax, and people like to know what they'll end up paying.

Is it illegal to advertise the pre-VAT price in England?

You can only advertise pre-vat price if you're selling to businesses. If you're selling to consumers you must show the with-vat price.

After all, the tax on products varies from country to country.

Well, it doesn't vary within the countries that make up the UK.

And the rule in Europe is that you pay VAT in the country you're buying from - so it doesn't make sense to advertise pre-VAT prices for cross-border sales. Sales tax is charged on internet sales.

The actual price before taxes is what the product's advertised price should be. This way, England can do what it wants with the VAT tax. But Apple's advertised prices will be the same everywhere in the world.

Actually, most countries advertise with-tax rates. It's the US that's out of line, if anything.

 

[malachiman]

We had the very same issue happen here in New Zealand recently our GST went up to 15% so did Apple’s prices.

$814NZD for an entry level iPad now.

Are retailers required to advertise the price with tax? I don't know of anywhere that happens in the US except vending machines, but maybe that's because we don't have national sales tax.

In NZ all retail pricing is inclusive of GST, only exceptions are places that sell “wholesale” or B2B. That’s because GST is an end user tax.

 

[Eddyisgreat]

Actually, most countries advertise with-tax rates. It's the US that's out of line, if anything.

But there's a lot of variation between states to consider. For instance, certain states mandate that retailers collect sales tax for the retail value of , say, an iPhone, instead of on the $200 dollar subsidized price. Other states only charge tax on the $200.

 

[mdriftmeyer]

^^ this ^^

All those boasting about their 'free' higher education applecare gotta wonder where it all comes from .

And LOL at Apple absorbing the cost. When has Apple ever absorbed anything; save for free iPhone case or iPhone gift card for early adopters every now and again. That was because of their own fault though.

When has any publicly traded corporation absorbed the charge and not passed it onto the consumer?

 

[jonwilson1988]

Of course Apple has to raise the prices. The friggin tax will reduce sales, not to mention increase unemployment and drive the UK straight back to the Stone Age. If the U.S. ever tries to introduce a VAT tax, there WILL BE a full-on revolution.

Its not like this has just been introduced at 20%, its risen from 17.5% because our last Labour Government overspent and our current government is paying the debts of the Blair and Bush wars as well as a global recession.

We may have VAT but we get free healthcare.

 

[ThisIsNotMe]

There is two groups, the Dems want this in addition to our income tax (bad idea) and there are those that want a VAT in exchange for eliminating all other forms of taxes. The later may not be so bad? We only pay when we spend!

I agree that the income tax should be eliminated and either a 'fair' tax or national sales tax should be instituted. Sadly the current Democratic regime wants an income tax and a VAT tax.

 

[firestarter]

When has any publicly traded corporation absorbed the charge and not passed it onto the consumer?

Well, the example of Amazon (with supporting figures) was given just a few posts back.

 

[pcharles]

The Government We Deserve

As a postgraduate student in England, I worked with a professor from the former East Germany. He had a saying that "The people get the government they deserve."

Many people, tired of Brown et al, were tricked in to voting for Cameron (and Clegg) because they wanted a change. And change those people are now getting, very little of which is good. My mother (who predicted this would happen under Cameron and Clegg), for example, has lost 90% of her over 60's benefits and now faces a 2.5% increase in the cost of living.

We only have to look at British history to see how this happens time after time. The public expect unlimited freebies under Labour and do not get them, so they vote conservative and eventually realize it was a mistake. Then the cycle repeats. Look at the general strikes in the early 70's, and then the time of Thatcher.

This increase in VAT, and many of the recent reductions in services are just the tip of the iceberg. I'm not saying that Labour would not have made cuts, but I have to believe they would not have been so drastic.

How does this affect Apple, and its prices? Just wait and see!

BTW: Yes, you can quote prices without VAT. It is actually very common in the electronics industry, particularly when tax might be deductible.

 

[Apple OC]

Actually, most countries advertise with-tax rates. It's the US that's out of line, if anything.

In Canada ... prices are shown without the 13% HST ... because virtually everything you buy has 13% added to it ... the Harmonized Sales Tax is just a given.

 

[Starship77]

Some countries charge way more than that. Check Brazilian prices for example: R$ 3,799.00 (US$ 2,300.00) for the cheapest (1199) macbook pro... It's 60% plus the state taxes that vary but are around 17-18% over the total (including shipment). That's more than 100% taxes in the final product...

I'm lucky I don't live there anymore...

 

[DaBrain]

And our politicians in America wants the same kind of VAT taxes. Value-Added, indeed.

They sure do and WE are FOOLS if we let them!

20%! Like in 1/5th of additional product purchase price! Crazy!

So we here in the US think that Obama Care and all other liberal Free programs really are free. Well take another look folks at what that Free deal really costs, whether its health care or the thousands of other entitlements the liberals pass out with our tax money just to buy off your vote and to top it off, they do it with your money!

 

[Secruoser]

So much for a monetary system.

 

[whatever]

Are retailers required to advertise the price with tax? I don't know of anywhere that happens in the US except vending machines, but maybe that's because we don't have national sales tax.

We don't have a VAT or national sales tax, but we, the US, really needs to have one. It's the only way for us to drive the deficit down. Of course our politicians care more about getting re-elected than then they care about securing our future and prosperity.

 

[firestarter]

Many people, tired of Brown et al, were tricked in to voting for Cameron (and Clegg) because they wanted a change. And change those people are now getting, very little of which is good. My mother (who predicted this would happen under Cameron and Clegg), for example, has lost 90% of her over 60's benefits and now faces a 2.5% increase in the cost of living.

The VAT rise is a rise of 2% on the sticker-price. And let's not forget that most staples (including food) have no VAT added. So your dear mother will probably face an increase of <1%.

We only have to look at British history to see how this happens time after time. The public expect unlimited freebies under Labour and do not get them, so they vote conservative and eventually realize it was a mistake. Then the cycle repeats. Look at the general strikes in the early 70's, and then the time of Thatcher.

This increase in VAT, and many of the recent reductions in services are just the tip of the iceberg. I'm not saying that Labour would not have made cuts, but I have to believe they would not have been so drastic.

So you're disappointed that Labour didn't give you all the freebies you wanted, yet you're now annoyed that tax has to rise to pay for their 'largess'. Where exactly do you think the government gets its money from?

BTW: Yes, you can quote prices without VAT. It is actually very common in the electronics industry, particularly when tax might be deductible.

Correct - when selling to businesses. You must quote when selling to the general public.

In Canada ... prices are shown without the 13% HST ... because virtually everything you buy has 13% added to it ... the Harmonized Sales Tax is just a given.

I think you're agreeing with me. If you don't see the tax on the pricetag because it's already been added, then the prices are shown with tax, aren't they?

So we here in the US think that Obama Care and all other liberal Free programs really are free. Well take another look folks at what that Free deal really costs, whether its health care or the thousands of other entitlements the liberals pass out with our tax money just to buy off your vote and to top it off, they do it with your money!

Well, your health care costs you double per person what ours does, so I guess you're wrong on that.

 

[Apple OC]

They sure do and WE are FOOLS if we let them!

20%! Like in 1/5th of additional product purchase price! Crazy!

So we here in the US think that Obama Care and all other liberal Free programs really are free. Well take another look folks at what that Free deal really costs, whether its health care or the thousands of other entitlements the liberals pass out with our tax money just to buy off your vote and to top it off, they do it with your money!

You are not Fools ... when your Government decides to add ... GST, HST, VAT or whatever is the Tax they want ... You cannot stop it. ... they just do it.

 

[Daveoc64]

This.

Apple do overcharge us (looking at the before VAT price) but our consumer rights are better than in the US and that does add to their cost. Effectively we can demand the repair or replacement of a product during it's natural life if it breaks due to a manufacturing defect... and that gives us some of the benefits of extended Applecare 'for free'.

This isn't really correct as these legal rights are between the consumer and the retailer.

Apple isn't always the retailer when selling its products.

If anything, the way that they offer support to consumers reduces the statutory rights consumers get.

 

[mr.steevo]

Death and taxes.

You know the rest...

 

[Apple OC]

I think you're agreeing with me. If you don't see the tax on the pricetag because it's already been added, then the prices are shown with tax, aren't they?.

No Firestarter ... they do not show the Tax in the price ... often you will see some fine print that says +HST but it is never in the price.

They just brought it out last year ... and even tacked it onto buying a house.

13%

 

[DaBrain]

Its not like this has just been introduced at 20%, its risen from 17.5% because our last Labour Government overspent and our current government is paying the debts of the Blair and Bush wars as well as a global recession.

We may have VAT but we get free healthcare.

Yeah sure! You really think your Healthcare is Free? Hmmmm I wonder what the word "TAX" means then?

Gotta Love the word FREE!

 

[whatever]

They sure do and WE are FOOLS if we let them!

20%! Like in 1/5th of additional product purchase price! Crazy!

So we here in the US think that Obama Care and all other liberal Free programs really are free. Well take another look folks at what that Free deal really costs, whether its health care or the thousands of other entitlements the liberals pass out with our tax money just to buy off your vote and to top it off, they do it with your money!

For starters, it's not the Liberals that screwed up our economy.

And I for one would not call President Obama a Liberal, not that Liberal is a bad word.

I also do not consider paying taxes a bad thing either.

Just imagined if the Democrats allowed the Republicans to privatize social security. Of course the Democrats are to stupid to bring that up.

The Democrats-Republicans (yes it's one party, don't let them fool you) are spending are tax dollars on entitlements. The biggest one being the defense contractors. Billions of dollars are spent developing weapons which never leave the proof-of-concept phase. If we cut out defense budget in half we would still spend more money than the next top ten countries combined on defense! Even the Pentagon wants to make cuts, but the Democrats-Republicans say "no".

And please don't forget that the biggest social program we have is Social Security, that entitlement that future generations will pay for.

A 20% VAT is crazy, but a 5% VAT/National Sales Tax, is that really bad. It's not going to stop Americans from spending and if it did, then maybe the ones who didn't spend would save!

But then again, I don't think it's crazy to leave a 20% tip when I go out to eat either...

 

[firestarter]

This isn't really correct as these legal rights are between the consumer and the retailer.

Apple isn't always the retailer when selling its products.

True, but we don't know what underlying price Apple charges its resellers. It could allow them a larger margin to account for these additional consumer rights. Apple would similarly enjoy that margin where they make the retail sale.

No Firestarter ... they do not show the Tax in the price ... often you will see some fine print that says +HST but it is never in the price.

They just brought it out last year ... and even tacked it onto buying a house.

13%

I think you're misunderstanding. When I say that a UK price is 'with VAT' - that tax is often invisible (ie, VAT is not mentioned or separated out on the invoice). The price still includes the tax though - and it sounds like the same situation happens in Canada.

 

[Daveoc64]

Yeah sure! You really think your Healthcare is Free? Hmmmm I wonder what the word "TAX" means then?

Gotta Love the word FREE!

It's free at the point of usage.

 

[Mattsasa]

CURSE YOU APPLE! how dare you let the government in the united kingdom increase their taxes! I will troll forums telling everybody out this outrageous event! You'll regret this Apple!

 

[Daveoc64]

CURSE YOU APPLE! how dare you let the government in the united kingdom increase their taxes! I will troll forums telling everybody out this outrageous event! You'll regret this Apple!

I don't think people are blaming Apple for the tax increase.

We're blaming Apple for charging UK customers £26 ($40 US) more for an Apple TV that does less than it does in the US.

Other products have similar discrepancies.

As others have noted, other major international retailers are not passing on the VAT increase - Apple with such high margins surely should be able to.

 

[firestarter]

Yeah sure! You really think your Healthcare is Free? Hmmmm I wonder what the word "TAX" means then?

Gotta Love the word FREE!

And your healthcare costs double per capita.
Less of the population are covered.
You have a lower life expectancy.

Great deal!