Price Marking Order 2004 - Consultation on proposal to amend the provisions concerning a change to the VAT rate
Open date: 23 Oct 2009
Closing date: 23 Nov 2009
Background to consultation
Traders are required to display clearly the prices inclusive of VAT. They will therefore need to change their prices to take account of price adjustments they make after a change to the rate of VAT. The standard rate of VAT will revert to 17.5% on 1 January 2010.
For a period up to 14 days, traders are permitted under the Price Marking Order 2004 (SI 2004/102) to let consumers know, by way of a general notice, that an adjustment in price, to take account of the VAT change, will be made at the till.
Reason for consultation
Many retailers had difficulty meeting the 14 day deadline when the standard rate of VAT was reduced to 15% on 1 December 2008. The Department is therefore proposing to extend the length of time that traders can display a general notice, and need not alter price tickets or labels for goods, from 14 days to 28 days. This change would enable them to cope with the demands of one of their busiest trading periods and would be of particular benefit to SME retailers as they seek to rapidly and accurately update pricing with the limited number of staff they employ. This change would require amending Section 11(a) of the Price Marking Order 2004 (SI 2004/102).
Consultation Documents
Consultation Responses
