The government lowers the VAT to 16% which results in the company charging the same amount but pocketing the 1% that was supposed to go to the consumer…
This should be somehow brought to the government attention
It’s true, but this is also a deflationary measure as it allows the company to cover the rising costs without increasing the consumer facing prices.
Not saying they needed it, but it’s a little more complex.
It’s the same with RTL+, Netflix, Disney,… I already wrote an email asking for an explanation and refund.
Only RTL+ answered my complaint. They gave me a refund of a few cents and closed my account by referring to their conditions.
Ha….such a supprise.
You have to consider the cost side. This means that companies don’t need to raise prices further to meet rising costs.
It sucks that we aren’t directly seeing the price cuts passed to us, but the companies have to meet their costs too, and this helps them do it without raising prices on us (hopefully).
[deleted]
Its the same when we get 2.5% hike. Everyone gets the same if you were best rated or did an average work. Company gives nothing elsex I remember having a review with my subordinate and he got the best rating possible and a €136 hike for the whole year after 2.5%. We sat in silence.
A lot of businesses and services are sold with their price vat-inclusive independent of the country. That means that we actually overpay for many services as the company is willing to get less net income for the same service from other countries.
This is arguably unfair to the consumer but seems legal.
First day in capitalism?
I am wondering how this would even be legal?
Of course Apple can always increase prices by a certain amount to match the 9,99€ but this is still an contractual change so where you properly asked if you agree to the new terms or is this page just something you find when going to the subscription information page by yourself?
I was surprised in a good way to see my phone invoice from Orange. It was indeed unexpected, because the norm is what op showed.
cry about it honestly
I ordered I new bike on canyon.com in December 2022 that was due for delivery in March 2023. When the Government lowered the VAT from 17% to 7% on bikes on January 1st 2023, I received a notification from canyon announcing they had decided to pass this saving on to their customer. I believe this conveys a very positive image about a company and shows that they are customer oriented.
Plenty of online shops do this: You look at prices for Germany or other country with higher VAT, and when you switch to Luxembourg, the price remains the same.
Amazon and thomann.de are one of the few exceptions that actually lower the price when you switch country to Luxembourg.
If I recall correctly, prices on Foozo were hiked the moment the VAT change was announced. Would have been more obvious had they done it when the vat changes came into effect. Felt like a scummy move at the time. But inflation, war in Ukraine, covid, etc. /s
Lower the VAT tax on essential goods. Raise capital gains tax on corporations.
Guidelines from tax authorities was to unchange taxable basis but it was not mandatory. Some companies might increase it to cover inflation and gaz/electricity price. In your example, data server require lot of electricity and price has not changed since 2020
18 comments
The government lowers the VAT to 16% which results in the company charging the same amount but pocketing the 1% that was supposed to go to the consumer…
This should be somehow brought to the government attention
It’s true, but this is also a deflationary measure as it allows the company to cover the rising costs without increasing the consumer facing prices.
Not saying they needed it, but it’s a little more complex.
It’s the same with RTL+, Netflix, Disney,… I already wrote an email asking for an explanation and refund.
Only RTL+ answered my complaint. They gave me a refund of a few cents and closed my account by referring to their conditions.
Ha….such a supprise.
You have to consider the cost side. This means that companies don’t need to raise prices further to meet rising costs.
It sucks that we aren’t directly seeing the price cuts passed to us, but the companies have to meet their costs too, and this helps them do it without raising prices on us (hopefully).
[deleted]
Its the same when we get 2.5% hike. Everyone gets the same if you were best rated or did an average work. Company gives nothing elsex I remember having a review with my subordinate and he got the best rating possible and a €136 hike for the whole year after 2.5%. We sat in silence.
A lot of businesses and services are sold with their price vat-inclusive independent of the country. That means that we actually overpay for many services as the company is willing to get less net income for the same service from other countries.
This is arguably unfair to the consumer but seems legal.
First day in capitalism?
I am wondering how this would even be legal?
Of course Apple can always increase prices by a certain amount to match the 9,99€ but this is still an contractual change so where you properly asked if you agree to the new terms or is this page just something you find when going to the subscription information page by yourself?
I was surprised in a good way to see my phone invoice from Orange. It was indeed unexpected, because the norm is what op showed.
cry about it honestly
I ordered I new bike on canyon.com in December 2022 that was due for delivery in March 2023. When the Government lowered the VAT from 17% to 7% on bikes on January 1st 2023, I received a notification from canyon announcing they had decided to pass this saving on to their customer. I believe this conveys a very positive image about a company and shows that they are customer oriented.
Plenty of online shops do this: You look at prices for Germany or other country with higher VAT, and when you switch to Luxembourg, the price remains the same.
Amazon and thomann.de are one of the few exceptions that actually lower the price when you switch country to Luxembourg.
If I recall correctly, prices on Foozo were hiked the moment the VAT change was announced. Would have been more obvious had they done it when the vat changes came into effect. Felt like a scummy move at the time. But inflation, war in Ukraine, covid, etc. /s
Lower the VAT tax on essential goods. Raise capital gains tax on corporations.
Guidelines from tax authorities was to unchange taxable basis but it was not mandatory. Some companies might increase it to cover inflation and gaz/electricity price. In your example, data server require lot of electricity and price has not changed since 2020