We are reducing the price of all of our VAT qualifying products to reflect the Government's reduction in VAT from 23% to 21%. This 2% reduction in VAT will run from 01 September 2020 until 10pm on 28 February 2021. We estimate that this will save our customers around €2m over the course of the VAT reduction period.
What is VAT?
Value Added Tax (VAT) is a tax charged on the sale of goods or services and is included in the price of most products and services that we use every day. The Government are reducing VAT from 23% to 21% from 01 September 2020 to 28 February 2021. This will equate to a reduction of 1.6% on the price you pay. Read more about VAT here: https://www.citizensinformation.ie/en/money_and_tax/tax/duties_and_vat/value_added_tax.html.
How long will the VAT reduction period last?
The Government have stated that this temporary 2% VAT reduction will run from 01 September 2020 to 28 February 2021.
Which prices will not change?
Our delivery prices, prices of gift vouchers and replacement insurance will not change. All other products that are subject to VAT will change in price.
Why is the price of my product an unusual number and not a rounded amount?
We have reduced VAT by 2% on all products and then rounded that to the nearest cent. Therefore many of our prices will not be a whole Euro, or 50 or 99 Cents amount.
The saving that I can see is more than the VAT reduction, compared to the previously stated price. Why?
Some of our products will also be included in other promotions or price reductions events during the VAT reduction period. The price of any of these products during the VAT reduction period will include both the 2% VAT reduction and the additional price reduction, shown as one new price.
Why has the price of my product gone up during the VAT reduction period?
If a product was already being sold at a reduced / promoted price before the VAT reduction period, the price will have been reduced again on the 01 September to reflect the VAT reduction. Once the original price promotion ends the price shown will go up, but will still reflect the VAT reduction.
For example, if a product was temporarily reduced in price by 20% before 01 September from €100.00 to €80.00, it would then be further reduced in price due to the VAT reduction on 01 September, becoming €78.70. However due to systems limitations we will not be able to show the previous savings on all occasions. Once the 20% off promotion ends the price will go back to its pre-discounted price but with the VAT reduction still applied, therefore becoming €98.37.
If the price of a product is reduced / promoted during the VAT reduction period, after the 2% VAT reduction has already been applied, the price will revert back to the VAT reduction price once the promotion finishes.
Using the same 20% off example, the product would reduce in price from €100.00 to €98.37 due to the VAT reduction and then have the 20% offer applied, taking it to €78.70. Once the 20% offer finishes the price would return to €98.37.
Why don't I see a promotional price / savings message (for example Great New Price or Was / Now Price) alongside my product?
This is because of the way our systems work. Even if there is no specific savings message shown with your product, please be assured that the VAT reduction has been applied.
Why do I see a promotional price / savings message alongside my product, which is more than the 2% VAT reduction?
This means that the product has also had its price reduced due to another offer or promotion, alongside the VAT reduction.
How are these savings funded?
VAT is a tax paid to the Government. During this period Argos is required to pay less tax and we are passing on this saving to you, so the Government is funding the 2% VAT reduction.
What happens if I order a product outside of the VAT reduction period, but have it delivered during the period?
The price you pay will reflect when you order and pay for the product, not when you have it delivered. If you order and pay between the 01 September 2020 and 28 February 2021 you will pay the reduced VAT rate, even if you have it delivered outside of the period.
What happens if I reserve a product online using Click & Collect, outside of the VAT reduction period, but collect it during the period?
The price you pay will reflect when you collect and pay for the product, not when you reserve it online. If you collect and pay between the 01 September 2020 and 28 February 2021 you will pay the reduced VAT rate, even if you reserve it outside of the period.