5th November 2009
Will Retailers get More Time for VAT Rise?

The Government is considering extending the current 14-day period retailers have to re-price their goods following a VAT change, so that they have more time to prepare for January’s return to a 17.5% rate.
A consultation has been launched on whether to amend the Price Marking Order so that retailers have 28 days to change their price labels when the rate of VAT increases from 15% to 17.5% on 1 January 2010.
Currently, retailers are obliged to change the price labels on all their products within 14 days of a VAT change, or risk prosecution.
“When the reduced rate of VAT was introduced last December, customers and enforcement bodies were prepared to tolerate differing prices being charged at tills from those shown on the shelf or on item labels,”

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