VAT increase : companies absorbing VS companies passing it on to you

Rouxenator

Rouxenator

Dank meme lord
Joined
Oct 31, 2007
Messages
46,376
Reaction score
22,375
Location
Stellenbosch
Many of you probably got emails or SMSs over the last few weeks regarding the VAT increase of 1% to 15%. What is interesting to me is the companies that are absorbing this cost VS those that pass it on to the customer.

Let's list the good ones VS the bad ones. In my case so far :

Passing it on :
Admed Gap Cover
Telkom
Vodacom
ABSA
Vox

Absorbing it:
Liberty
Openweb
 
Rouxenator said:
Many of you probably got emails or SMSs over the last few weeks regarding the VAT increase of 1% to 15%. What is interesting to me is the companies that are absorbing this cost VS those that pass it on to the customer.

Let's list the good ones VS the bad ones. In my case so far :

Passing it on :
Admed Gap Cover
Telkom
Vodacom
ABSA
Vox

Absorbing it:
Liberty
Openweb
Click to expand...

What is wrong with passing it on? The VAT is charged to the client, and the 14% previously was already passed on to the client, why should the extra 1% be any different?

What would the reason be to expect a company to absorb it?
 
Ho3n3r said:
What is wrong with passing it on? The VAT is charged to the client, and the 14% previously was already passed on to the client, why should the extra 1% be any different?

What would the reason be to expect a company to absorb it?
Click to expand...

To stay within the psychological price bracket, not having strange prices or seen to be to make a bit of extra profit by rounding up.

For example

Current Price is R99,00 including vat. after the vat increase this will be R99,87 you can leave it at that or maybe increase to R100,00 for a rounded figure.
 
The problem is they don't just add 1%. They increase the VAT + the fees by another 10% to 15%. So you end with 15% vat + 15% (or whatever) increase on fees.
 
Rouxenator said:
Many of you probably got emails or SMSs over the last few weeks regarding the VAT increase of 1% to 15%. What is interesting to me is the companies that are absorbing this cost VS those that pass it on to the customer.

Let's list the good ones VS the bad ones. In my case so far :

Passing it on :
Admed Gap Cover
Telkom
Vodacom
ABSA
Vox

Absorbing it:
Liberty
Openweb
Click to expand...

DSTV absorbing it
 
Ho3n3r said:
What is wrong with passing it on? The VAT is charged to the client, and the 14% previously was already passed on to the client, why should the extra 1% be any different?

What would the reason be to expect a company to absorb it?
Click to expand...

That ^^^

Why should a company pay your taxes for you? VAT is charged and paid to SARS not the company.

That said we are absorbing the VAT increase on all our locally charged things, passing on the increase in customs VAT though.
 
I can't see why companies should absorb it. It's not something they control.
 
We are absorbing it.

(The following month we will fsuk you over with double digit price escalations :D)
 
Rouxenator said:
Many of you probably got emails or SMSs over the last few weeks regarding the VAT increase of 1% to 15%. What is interesting to me is the companies that are absorbing this cost VS those that pass it on to the customer.

Let's list the good ones VS the bad ones. In my case so far :

Passing it on :
Admed Gap Cover
Telkom
Vodacom
ABSA
Vox

Absorbing it:
Liberty
Openweb
Click to expand...

What product do you have with Liberty? Most of their products are VAT exempt I think :eek:
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter