VAT Rate Change

In a bid to attract customers over the weekend, some of the largest companies in the UK are offering 'VAT rate cut' prices already, and many more will be doing the same in the days leading up to the official rate change. Currys, PC World and Dixons started passing the cut on as soon as it was announced, in a bid to attract more customers to their stores and websites. A spokesman for the parent company said: "We felt it was right thing to do, even though it was complicated. We also felt that we if did not do it then customers would stay away and we need to help customers, not make it more difficult." Article Continues Below: Its not just electrical stores that are doing this. Tesco have annouced that as from Friday, all non-food items in their stores will be listed at post rate change prices. A large percentage of consumers will be getting paid this week, and it would appear that Tesco hopes to take adavantage of the early christmas shoppers this weekend. In a similar move, sainsbury's have annouced that selected products in their stores will also be offered at the post VAT cut prices as from Friday morning. Food remains largly unnafected, due to VAT not being charged at the full rate on these items. Additionally, Tobacco, Alcohol and Fuel will also not be affect, despite being assesed VAT at the standard rate. In the same report that annouced the VAT rate change, it was also announced that duty on Alcohol, Tobacco and Petrol would be raised by 2.5%, essentially coving the VAT rate cut that will be introduced.