Game.co.uk Charging Me Vat?

[Trevorblack2014]

I've attempted to buy a bundle that costs a total of £330. But the website is charging me £50 VAT (£380). I thought VAT is for people who live outside of the UK, not people who live in the UK?

[EDDIE51]

Wrong way round, VAT is charged on sales to UK residents, it is those outside that do not pay it.

[Buenchico]

I'm doubly confused!

First of all, VAT most definitely applies to people who live in the UK. You pay VAT on most items that you buy in the shops (except food, books, newspapers and a few other things). You pay VAT on everything you eat and drink in restaurants and pubs. You pay VAT on your car parts and servicing (unless, possibly, it's a one-man business with a very low turnover, so that he doesn't have to register for VAT), you pay VAT on any building work you have done (with the same exception for small businesses). Indeed, with very few exceptions, you pay VAT on ALL goods and services in the UK.

So I'm confused as to how you could think that you wouldn't pay VAT on something from Game. (Prices on goods and services normally INCLUDE the VAT but firms who supply goods or services on a 'business to business' basis, or who offer such goods or services to customers both in the UK and abroad, are permitted to advertise 'non VAT' prices and then add the VAT on at the end where appropriate).

However (with a few exceptions) the current rate of VAT is 20%. So on a £330 purchase I'd expect to see £66 VAT charged, not £50. (So that's why I'm confused again!). The only reason that I can think of is that part of your order is VAT-exempt (or zero-rated), such as books.

[Trevorblack2014]

I am also confused by the VAT price listing.

Here is the listing:

Promotional discount  -£15.00
VAT 20% £55.00
Basket Total: £329.99 2  items

So is it £330 or £385?

I know that the bundle costs £340 without the discount item.

[Trevorblack2014]

I am also confused by the VAT price listing.

Here is the listing:

Promotional discount  -£15.00
VAT 20% £55.00
Basket Total: £329.99 2  items

So is it £330 or £385?

I know that the bundle costs £340 without the discount item.

[Trevorblack2014]

I am also confused by the VAT price listing.

Here is the listing:

Promotional discount  -£15.00
VAT 20% £55.00
Basket Total: £329.99 2  items

So is it £330 or £385?

I know that the bundle costs £340 without the discount item.

[Buenchico]

Let's do some easy sums:

If you buy something for £100 and pay 20% VAT on top, you'll have £120 to pay. That means that the VAT you pay (£20) is actually one sixth of the total amount.

You're being charged £330 (ignoring the odd penny) and one sixth of that just happens to be £55.

So, quite clearly, your TOTAL payment is £330 and you're being advised that it INCLUDES £55 VAT. So you've only got £330 to pay.

It's no different to getting a receipt in, say, Burger King. It shows you the total amount you've paid but also shows you how much of that goes to the treasury in the form of VAT.

[ABerrant]

£275 + 20% (£55) = £330

[Old_Geezer]

I've been looking at those numbers and I can't see how they relate to £340 regardless whether that is inc. or ex. VAT.

£340 * 0.85 = £289
£275 / 0.85 = £323.52

Maybe you should ask Game how the final bill is 15% less than it would be. Or maybe a screen dump of the final basket details might explain ?