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Thread: Retailer's discount on items

  1. #1
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    Default Retailer's discount on items

    Hello All,

    I was in a members' only store today to make some purchase and found a baby item with discount of buy 5 get £8.50 off. Well, I bought 5 of the item and paid. Got home to discover that although the £8.50 discount was given, I have been charged VAT on full price. Put simply, there is a discount of 50p on an item worth £2.00. I was charged £1.50 for item but charged VAT on £2.00 rather than £1.50. Is this right?

    I have been back to the store and even the store manager on duty could not give a logical explanation. Need to call head office tomorrow and get back to me. Please note that this is not about myself alone but the number of people they will have been charging VAT wrongly if their action is incorrect.

    Views welcomed.

  2. #2
    Regular Member Derek Mc's Avatar
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    I believe you are correct and that VAT is only charged on the till price paid not the prevailing cost.

  3. #3
    Regular Member m8internet's Avatar
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    Copy the receipt and send it to their registered office
    VAT is only calculated on the total due

    As an example :
    cost - discount + VAT
    So if the cost and discount are the same, then VAT is calculated as nil

    I caught Carphone Warehouse out with two different VAT rates from two different stores, for the same product (nil VAT)
    It turned out the other store was franchise and was claiming VAT back incorrectly

    You could also refer the matter to Customs & Excise, if you really do not like the company...

  4. #4
    Regular Member neill's Avatar
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    Default

    Every store has to charge vat, even if they say no vat discount. They just give a discount to the equivalent value. And vat is deducted of pre offer amount

  5. #5
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    Default

    Thanks for the replies. The store has just been on the phone and they have accepted there was an error on their part which has led to all their UK stores charging customers VAT on full price rather than discounted price of items. For how long this has been going on is anyone's guess. All corrected on their systems now.

  6. #6
    VIP-Member Johnsdutton's Avatar
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    Report them, as you say how many others have been ripped off.
    3.2 v6 Signum and loving it

    http://www.freewebs.com/johnsdutton/

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