Apple savings do not give UK educational discount

Discussion in 'Buying Tips and Advice' started by Sycren, Jul 19, 2011.

  1. Sycren macrumors newbie

    Feb 25, 2011
    Just bought an imac 27" with a university discount. This came with a free £65 mac store voucher although this cost was added to the bill. The only savings on the bill was £54.17, any idea what has happened? Has Vat somehow been applied to this wrongly? Or am I actually paying around £10 to actually get this 'free' voucher?
  2. iStudentUK macrumors 65816


    Mar 8, 2009
    OK so the £54.17 is £65 without VAT. Are the VAT savings listed later in the bill?
  3. ag227 macrumors regular

    Jun 11, 2007
    The total value at the end is correct.

    I think that becasue the gift voucher is subject to 0% vat, then the pre vat price is obviously still £65.

    Then in the saving, it says a saving of £54.17 before vat. I think this is because it is calculating the hole basket with vat at 20%, therefore a saving of £65 with VAT at 20%.

    eg for macbook pro.

    £716.00 (ex Vat) 859.20(inc Vat)
    £65.00 (ex vat) £65.00 (inc vat)

    Basket Subtotal£781.00.
    Free Delivery£0.00.
    Savings (ex. VAT)-£54.17.
    VAT £132.37.
    Order Total£859.20.
    Total savings (excl. VAT)£54.17

    So the order total is correct.

    They way to think of it is that you are paying full price for the card, but getting £65 including vat off the Mac. Which saves apple £54.17 but also means £10 ish is saved on their vat bill to the goverment.
  4. Sycren thread starter macrumors newbie

    Feb 25, 2011
    ah you are right, but I still think that the order of this bill is wrong. The savings should read £65 as this is also the cost before tax.

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  5. gnasher729 macrumors P6


    Nov 25, 2005
    To you it makes no difference. But to Apple, it makes £11 difference. And to the tax office as well.

    Apple let you save £65 after tax, which for you is the only relevant amount. If they gave you a free £65 card, Apple would have to pay the VAT of your full price MacBook. Instead they gave you a £65 rebate on the MacBook, so now Apple pays VAT on the price of the MacBook minus £65. So Apple pays 20% of £65 less to the tax office.

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