Will I pay the VAT increase for an out of stock item at Amazon?

Hi, I'm ordering something from Amazon that is listed as being back in stock on 5th January. Looking at Amazon's FAQs on the VAT increase just muddies the waters...


The first paragraph states that the increase will affect all items dispatched after midnight on 4th Jan, then further down it says VAT will be 17.5% for orders placed before that date. Does anyone know if I'll get hit with a bigger bill when they come to take payment at dispatch?



how much is the item?

Should be at current price as thats what you agreed to pay for the item(s).

Original Poster

£289, was unsure as they take payment at the point of dispatch.



£289, was unsure as they take payment at the point of dispatch.

they wont dispatch if the price goes up unless you agree to the increase

I would have thought you pay what you agreed to pay when the order was placed even if they charge you when its back in stock although I can't be sure.

Can't you ask Amazon?

It should not go up because when the VAT dropped to 15% i had some items on order and they raised the cost of the items and dropped the VAT so the price remained the same. I was told is was because that was the agreed price when the order was made. whether they stick to those principles when it is going to cost them is another question they should compensate by dropping the price of the item but only time will tell if they do.
Edited by: "newbie1001" 30th Dec 2010

They won't charge you more then you are qouted now, as they would be in breach of contract, and you would have all the grounds to make a claim on if dispatched at a higher price. Your order should be fine.


Can't you ask Amazon?

Yeah, why not?
0800 496 1081

Some items are shipped from Jersey where there is no vat. To be honest unless your purchasing something expensive it wouldn't be much of a difference in price.

The tax point date is the date of supply (there are some technical workarounds to this but it is generally true). Consequently, if Amazon or any other company don't supply goods until January, they will be liable to pay VAT of 20% on the sale. Some companies are likely to pay the additional amount themselves, others may cancel the order and others may contact the buyer to advise them of the price increase. Based on what Amazon are saying, I suspect that they are planning to pay the additional amount themselves.
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