VAT Changes
The government recently announced changes to the standard rate of VAT, reducing from 17.5% to 15%, to be effective from Monday 1 December 2008.
This applies to some of the new products that we sell in our high street shops and our online shop; it does not affect any second-hand donated items.
In order to be as fair and transparent in our pricing as possible, we are passing on the VAT changes to you – our customers.
How will the prices be changed?
In our high street shops:
- The prices will be reduced at the till.
- The price of ‘sale’ items will not change – the will be sold at the sale price marked on the item.
- Of course you can donate the difference in our collecting tin if you wish!
In our online shop:
- All prices shown already include the new VAT-reduction.
- Details of price changes in the online shop
Which products are reduced?
VAT applies only to the following products:
- New Christmas Gifts
- New Christmas decorations
- Christmas Cards and gift wrap
- New diaries and calendars
- New eco gadgets
- New jewellery
- Other Greeting Cards
- Chocolate
- Our online ethical collection (excluding sale items).
Which products are not reduced?
Standard VAT does not apply to the following products, so their prices will remain unchanged:
- All donated goods (second hand clothing, books, music, & homewares)
- New Books
- Food (excluding chocolate).
There are 4 chocolate-based items that do not apply for standard VAT, so their prices will remain unchanged:
- Cocoa
- Hot chocolate
- Cake mix
- Traidcraft Double Choc cookies
- Chocolate spread.
What sort of savings will you make?
If you want to calculate the new price you can use this easy formula:
Original Price ÷ 1.175 × 1.15
Some examples:
- If you buy a chocolate bar that was originally priced at 69p, it will now cost you 68p.
- If you buy a pack of Christmas cards that was priced at £2.99, it will now cost you £2.93.
- A £9.99 box of chocolates will now cost you £9.78.
If you have any further questions about VAT and our shops please contact support@oxfam.org.uk
