This consultation ran from to
Consultation on amending the length of time traders have to let consumers know about price adjustments after a change to the rate of VAT.
Traders are required to display clearly prices inclusive of VAT. They need to change their prices to take account of price adjustments they make after a change to the rate of VAT.
For a period up to 14 days, traders were 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, would be made at the till.
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 proposed 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 required amending Section 11(a) of the Price Marking Order 2004 (SI 2004/102).
The government published its response in December 2009. There was full support for the proposal to increase the notice period to 28 days.