How much VAT?

[saxy_jag]

On Xmas Eve I placed an order for two items with Amazon and went through the necessary process of inputting payment information. Amazon being Amazon, I know they don't actually charge your debit card until the point of despatch.

One of the items I ordered, a book, isn't VATable and that has already been despatched & charged. However, the other item (my new Kindle) is VATable and I've been given an estimated despatch (and presumably charge) date as January 4th. Given that Jan 4th is the date that the VAT rate goes up to 20%, what rate of VAT will I pay?

I wonder whether they've deliberately held off despatch until they can charge the new VAT rate, and whether that's legal, seeing as I've already agreed the sale at the price they quoted when I placed the entire order. Not that I'm likely to kick up a stink for the sake of less than a fiver, but it just seems a bit cheeky.

[factor-fiction]

I can't see the adntage to them in delaying it just so it attracts the higher VAT rate since they don't pocket the VAT- they simply collect it for the government

[ChuckFickens]

The extra does sit in amazons bank account earning interest for them until they pay it to the government though.

[MarkRae]

Which, for a company with a turnover as high as Amazon's, will represent millions...

[factor-fiction]

Millions in interest? Well I'll get my calculator out but their turnover would have to be huge to get millions in interest for holding an extra 2% or so at 2% pa interest for a few months.
Anyway- it's worth asking Amazon what the VAT would be

[Mobius1]

I'm pretty sure that if you place an order with Amazon at a given price, they are obliged to then charge you that price - or less - once they despatch the product to you. I've just done a trial run, the order summary shows the total cost including VAT at £149.99 with free super-saver delivery.

If you ordered like that, they will have sent you an order confirmation which shows the order total amounts including VAT. It would be unlawful of Amazon to then charge you the higher amount just because they despatched it after the VAT rise. That is there problem, they have already advised you of the total cost. The contract may only become binding once they charge your card, but if they charged you more without first giving you chance to opt out, they would in effect be altering the contract without your consent.

[saxy_jag]

Thanks Mobius. I've just checked the order confirmation and yes, they have itemised VAT at 17.5%.

As I said, it represents under a fiver, which I wouldn't have quibbled about anyway, because if I cancelled the order and went somewhere else, I'd still have to pay the higher rate. I just like to keep an eye things.

Interestingly, when I asked about Kindles in John Lewis just before Xmas, they said they didn't have any in stock and wouldn't have any until January. I guess because even if you pre-order from JL, you wouldn't pay up front and would have to pay the higher VAT when it's in stock.

[boxtops]

A lot of shops are saying "order before Jan 4 and you'll only have to pay 17.5% VAT" - fingers crossed, yours will be OK!

[bednobs]

they don't sell kindles anywhere else apart from amazon do they? it's an amazon brand

[Skyline D]

The point of sale is the point of a contract being formed which, with Amazon, is the point of order. The VAT WILL be charged at 17.5% regardless of when the item is despatched.

And Kindles are only available at Amazon AND John Lewis bednobs.

[ABerrant]

http://www.amazon.co....UTF8&nodeId=200587420

[saxy_jag]

Thank you AB - guess I was too dim to go and find that page myself.

It was the drink. ;-)