Cut in UK VAT means Macs cheaper for one year from next Monday

Apple has NO obligation whatsoever to pass on this cut.

 

So, wait, if the VAT is cut, Apple can still charge you the older VAT rate? Maybe I'm missing something, as in the US, if they cut the tax rate, you get it, as the companies have no choice in the matter.

 

I think it would take pretty big brass balls for any company to charge at the "old" VAT rate and pocket the difference.

Even Apple, Inc. might think twice.

Hopefully we will see that 2.5% difference.
Granted with Petrol taxes going UP… who knows.


Of course loads can be hidden under the old exchange rate excuse.

 

That's what I was thinking, but I'm not getting the first 3 posts.... Maybe I'm just dumb.

 

That's what I thought too. As not passing on the cut would mean Apple would be pocketing the 2.5%. Still passing that off as VAT would be fraud, wouldn't it?

Of course that could just increase the pre VAT price and keep the pricing. But that would just be wrong and I'd not buy an Apple product for 12 months.

 

The 2.0 unibody should be around £900, so £899 if I've done my maths right, which I almost certainly haven't.

 

2.5% savings from £900 would be £877.5

 

The Chancellor has not anticipated just how significant the volume of work required to change the VAT rate is.

In any case - VAT is paid to the Government by the companies much later than when you actually pay for your goods.

I'm not sure about the advertising law in terms of prices, but in any case, there is nothing to stop Apple charging £949 for the current MacBook next week. It will simply pay less in tax to the Government when they come knocking for it.

Just looking at the Apple site now, it doesn't actually advertise the amount of the £949 which is VAT - it just says that the figure includes it. It is only in the shopping cart where VAT is shown in an itemised fashion.

Remember that an item which costs £949 today already has 17.5% tax included. The price of the base aluminium Macbook will therefore be £928.80 if the tax cut is passed on.

It's not exactly a massive saving.

 

The same amount of work as when they put VAT up in the 90s?

And I bet he has considered it.

 

Ignore.

 

As already mentioned, Apple is under no obligation to pass on the savings to their customers. Apple could just raise the cost -VAT of its machines in order to make the price+VAT the same as it currently is. Which it may well do since the pound has been in free-fall recently against the dollar.

There's no question of fraud at all. It's up to each individual company to decide whether it passes on the VAT cut to its customers.

 

The difference isn't that big even if they pass it on. Though I'll be disgusted if they don't.

 

It's a 2.5% cut in the rate of applied VAT, not a cut in the total of product's price. It works out to about a 2.1% cut in the over-the counter price.

 

So, if you bought a machine within the last 14 days of next Monday, could you go back into the store and ask for your 2.5% VAT refund?

 

Pretty sure the answer is a big fat no.

 

Remember, while the low-end MacBook got a price cut in the US, we got a price hike in the UK (similar with the iPods too) thanks to the struggling exchange rate. So I'd bet they were thinking about price rises for the iMac, Mac Pro etc. I'm thinking Apple will just pass the savings to themselves, for Macs, iPods and probably iTunes too.

 

Apple may well choose to pass this on, but at the same time rebalance the prices against US at the current, significantly worse, exchange rate than when they first set the prices. So prices could actually go up.

Or they could just charge the exact same amount inc VAT by altering the exc VAT price to make up the difference, so no VAT fraud.

And as the VAT reduction only comes into effect on Monday, even if Apple do simply leave the exc VAT price as is now and charge less inc VAT you cannot get a refund for machines bought now: the price has not changed, only the amount of tax paid.

 

I think we can safely say that you won't get a refund. Especially as the tax rate was accurate when it was sold to you.

 

2.5% - WooHoo

When we have all lost our jobs and are out of work that £50 saving on a mac pro 8 core will come in real handy

Seriously thinking of heading to Canada to join my brother.

U.K. is in the brown stuff for many a year to come.

<END RANT>

 

If you've considered it, I'm fairly sure he has too.

 

fraud? , I'm no lawyer but it sounds fishy to me if a company does not pass on a reduced rate in VAT .

I'll ask my local government in the morning for sure , 2.5 % is still 2.5% , I mean if it works out at 50£ , that's a meal or a few days shopping at least !!

Better in my pocket than that of a multi national company .or maybe the Apple stock holder types on here don't agree as it'll be coming out of there pockets .


edit > if VAT has been cut neither you , I or Apple can change it .


rj

 

Beg to differ, maybe? Under the terms I purchased the machine, I can return within 14 days for a full refund, no questions asked. If, when the 2.5% VAT reduction hits, it means the machine is now on Apple's shelves for less, I can "buy it again" for that lower price. Ergo, I can get a "refund" on that price difference.