When 2% is 6% or more. Vat increase.

sonofabeach

I've just returned to Ireland after spending Christmas in England.Like most Irish men I had to have a pint of Guinness when I landed in Dublin Airport. I went to the bar on the arrivals floor in the new terminal. I was charged €5.30 for the pint.When I had been in the same bar when I was going out the same pint was €5. I asked the man behind the bar about the increase and he said it was because of the VAT increase.
Someone correct me if I'm wrong but is'nt 2% of €5= ten cent.I returned thre pint and asked for my money back. I decided to have a cup of coffee while waitng for my lift.The coffee was €2.90. I asked the barman why was the coffee only €2.40 when I departed? Vat increase was the answer.
Again I stand to be corrected but I thought food stuff was not included in the increase and even if it is a 50cent jump in price is a lot more than 2%.
I know that the bars/cafes/shops etc are not run by the DAA but surely they must have some control over the price structure.
I gave the coffee back and again asked for a refund.I will not be ripped off any more in Dublin Airport. In future when I fly I wil go straight to my boarding gate and wait to eat or drink untill I get wher I'm going.And if I feel the need for a pint or a coffee before I fly I'll go to a local pub or coffee shop before I go to the airport.
I did a little reserch before I left,other inreases in the Oak Bar on the arrivals floor in Terminal 2 all run between 6% and in the case of a packet of crisps 40%.A €2.20 bottle of water is now €2.40.
someone really needs to ask questions about the levels of these increase. I have emailed the DAA and my local TD to voice my concern about this.

Danno

Ah, thats more of thick Paddy, gouge the tourists and wonder why they never come back... but sure who cares as long as a quick buck is to be made.

Skopzz

I actually think our Government needs to freeze most prices by law and enact other measures as part of a price stabilization plan.

professore

Skopzz wrote: »

I actually think our Government needs to freeze most prices by law and enact other measures as part of a price stabilization plan.

This won't work. Doing what the OP did will work, if everyone does it. They were after the misty eyed returning immigrant market.

ejmaztec

Danno wrote: »

Ah, thats more of thick Paddy, gouge the tourists and wonder why they never come back... but sure who cares as long as a quick buck is to be made.

The only thing that changes in the tourist industry here is the feckin price. The same gougers look for sympathy when their takings drop but would never consider that it's self-inflicted.

CamperMan

€5.30 for 1 pint of Guinness, no wonder the pubs in Ireland are deserted and closing down....

ronaneire

An increase in VAT by 2% on a €5 pint should be €5.08. You would say it is easier for the them to put it up to €5.10.

No wonder this Country is how it is. More people like the OP need to stand and say no thanks.

I wonder how many more places had upped the their prices higher then what the 2% increase.

CIARAN_BOYLE

sonofabeach wrote: »

Again I stand to be corrected but I thought food stuff was not included in the increase and even if it is a 50cent jump in price is a lot more than 2%.
I know that the bars/cafes/shops etc are not run by the DAA but surely they must have some control over the price structure.

Ouut of date since the 21% is supposed to be 23% but you are right that coffee isn't included in the price rise. Hell if you looked at your receipt for the coffee it would most likely tell you that VAT was 0%. Businesses claim that the rise of the price of VAT effects wages since everyone in the country needed a rise in wages to offset the inflation caused by VAT and that all costs have risen as a result but I don't buy it.

http://www.citizensinformation.ie/en/money_and_tax/tax/duties_and_vat/value_added_tax.html wrote:

21% is the standard rate of VAT and all goods and services that do not fall into the reduced rate categories are charged at this rate. They include alcohol, audio-visual equipment, car parts and accessories, CDs, computers, consultancy services, cosmetics, detergents, diesel, fridges, furniture and furnishings, hardware, jewellery, lawnmowers, machinery, medicines (non-oral), office equipment, pet food, petrol, paper, tobacco, toys, tools, washing machines, bottled water.

13.5% is a reduced rate of VAT for items including fuel (coal, heating oil, gas), electricity, veterinary fees, building and building services, agricultural contracting services, short-term car hire, cleaning and maintenance services. 9% is a new reduced rate of VAT for tourism-related activities including restaurants, hotels, cinemas, hairdressing and newspapers. It applies for the period 1 July 2011 to 31 December 2013.
4.8% is a reduced rate of VAT specifically for agriculture. It applies to livestock (excluding chickens), greyhounds and the hire of horses.
0% (Zero) VAT rating includes all exports, tea, coffee, milk, bread, books, children’s clothes and shoes, oral medicine for humans and animals, vegetable seeds and fruit trees, fertilisers, large animal feed, disability aids such as wheelchairs, crutches and hearing aids.
Exempt from VAT
You do not have to pay any VAT on financial, medical or educational services. You may also not pay VAT for live theatrical and musical performances (except those where food or drink is served during all or part of the performance).

Skopzz

professore wrote: »

This won't work. Doing what the OP did will work, if everyone does it. They were after the misty eyed returning immigrant market.

Israel did it and it worked for them. Prices go up too quickly in Ireland these days.

Jarren

Anyone remembers the Irish Pound to Euro changeover?

As long as I remember some shops and businesses were rounding up the prices in Euros.

I can only hope that it won't be the case this time around.

johnners2981

ronaneire wrote: »

An increase in VAT by 2% on a €5 pint should be €5.08. You would say it is easier for the them to put it up to €5.10.

No wonder this Country is how it is. More people like the OP need to stand and say no thanks.

I wonder how many more places had upped the their prices higher then what the 2% increase.

Is 2% of €5 not 10c, where did you get 8c, I'm thoroughly confused

Skopzz

jarecki1976 wrote: »

Anyone remembers the Irish Pound to Euro changeover?

As long as I remember some shops and businesses were rounding up the prices in Euros.

I can only hope that it won't be the case this time around.

But we don't want to peg it back to the British Pound... The Euro is here to stay and so are we. Otherwise, we would loose purchasing power, experience higher inflation and loss of competitiveness. The issue is not about currency because Irish prices would continue to rise regardless. The issue is a lack of regulation on price stability.

Davidth88

johnners2981 wrote: »

Is 2% of €5 not 10c, where did you get 8c, I'm thoroughly confused

because it's 2% on the pre VAT price , so it's an extra 2% on 5 euro minus the old 23 %. Confusing I know

OP , that's just pure ripoff.

ronaneire

johnners2981 wrote: »

Is 2% of €5 not 10c, where did you get 8c, I'm thoroughly confused

An increase of 2% VAT is on the actual cost before you add the actual VAT. By adding the 2% what is happeing you are then already VAT on VAT.

Simplest way to show.

€5 ÷ 121 = 0.0413 x 100 = 4.13

€4.13 is the cost of the pint before you add VAT

€4.13 plus 21% €5.00

€4.13 plus 23% €5.08

mathepac

johnners2981 wrote: »

Is 2% of €5 not 10c, where did you get 8c, I'm thoroughly confused

€5 / 1.21 = €4.13 the pre-VAT price
€4.13 X 1.23 = €5.08 the "new" VAT inclusive price as calculated above.

Are you employed by the Dept of Finance by any chance?

ejmaztec

mathepac wrote: »

€5 / 1.21 = €4.13 the pre-VAT price
€4.13 X 1.23 = €5.08 the "new" VAT inclusive price as calculated above.

Are you employed by the Dept of Finance by any chance?

..or the more powerful Vintner's Association, which seems to want to destroy the drinks industry from within.

ResearchWill

CIARAN_BOYLE wrote: »

Ouut of date since the 21% is supposed to be 23% but you are right that coffee isn't included in the price rise. Hell if you looked at your receipt for the coffee it would most likely tell you that VAT was 0%. Businesses claim that the rise of the price of VAT effects wages since everyone in the country needed a rise in wages to offset the inflation caused by VAT and that all costs have risen as a result but I don't buy it.

While tea and coffee is at the 0% rate it is when you buy tea bags etc in a shop. Coffee in a coffe shop to have there is at the reduced rate of VAT http://www.revenue.ie/en/tax/vat/faqs/selling-coffee-juices-snacks-etc-either-eat-in-or-take-away.html

Funny I don't remember the reduced rate going up.

jdivision

Doesn't Donie Cassidy control them? Once a FFer, always a FFer.

the groutch

professore wrote: »

This won't work. Doing what the OP did will work, if everyone does it.

sure then they'd have to increase their prices further to cover wastage from everyone who doesnt bother reading pricelists first looking for their money back.

JONJO THE MISER

:eek: 5.30 Eur for a pint, sweet mother of god, most i have ever paid for a pint was 3.80 usually only pay 3 Eur.

Run_to_da_hills

Emirates has just set up in base at T2, fresh pickings for these rip off merchants.

maxer68

JONJO THE MISER wrote: »

:eek: 5.30 Eur for a pint, sweet mother of god, most i have ever paid for a pint was 3.80 usually only pay 3 Eur.

Here's prices in Morocco for 330ml Bud (locally brewed)

Main Supermarket - about €1.30 (15dh)
Small centra type place - about €1.80 (20dh)
Regular Bar in town - 3.50 (40dh)
Bar on beachfront - 4.50 (50dh)
Bar in Marina - 5.50 (60dh)

Imo - the best value was the Bar in Marina ad the added extras of seats overlooking bay facing into sunshine served with complimentary nuts and ice cold was well worth the extra.

Its never just about price - its about value.

longhalloween

maxer68 wrote: »

Imo - the best value was the Bar in Marina ad the added extras of seats overlooking bay facing into sunshine served with complimentary nuts and ice cold was well worth the extra.

Its never just about price - its about value.

That's true, but the bar in Dublin Airport doesn't really offer the same experience of warm sandy beaches and a romantic sunset.

The Guinness isn't even that good there

maxer68

longhalloween wrote: »

That's true, but the bar in Dublin Airport doesn't really offer the same experience of warm sandy beaches and a romantic sunset.

The Guinness isn't even that good there

But as with anything to do with Airports, it will be priced at the higher end of retail scale - whether its Dublin Airport or some airport in Greece.

Airports charge a very high rent to operators - a mix between fixed rent & commission on sales with an overall annual target. (one of the reasons Hughes & Hughes closed down to be replaced with WH Smith and 10% higher pricing!)

I would always expect to pay 10-15% higher in Airports for food / drink, but its the airports themselves imposing these higher prices due to their rents, rather than the operators of the individual units.

sonofabeach

the groutch wrote: »

sure then they'd have to increase their prices further to cover wastage from everyone who doesnt bother reading pricelists first looking for their money back.

My problem was not with the price but with the increase which is way above the 2% passed in the Budget.
I would like to also point out that there are no visable price lists on display in the Oak Cafe Bar for food or drink.
There are a lot of good points made here and it did'nt come as any great supprise to see that a prominent Fianna Fail member is involved. Normal rules do'nt apply to those guys and the top brass in the DAA were probabaly appointed by Bertie or his cronies.

Lenny

The father was in dublin airport this this morning. he ordered his point of guinness, he was charged €5, he queried did they not put the price up with the recent hike. the bar man had told him they had put their pint up to 5.30 recently with the tax & also because diago had put the price of guinness up by 7cent also.
They had to reduce their price because someone from above in the DAA had come down and told them to reduce their prices!!

sonofabeach

Good old DAA!!! I wonder if my email had anything to do with that. Maybe not but I'll be a little vain and think so.

rubadub

sonofabeach wrote: »

I returned thre pint and asked for my money back.

I wish everybody would simply get in the habit of asking the price of pints, just like most other goods & services they buy. This pint is either going to be hidden & get a new head and be served up to some other poor unfortunate, or dumped and prices increased to cover these wastage costs.

If more people went into pubs and asked prices and left when they heard it was too high, (just like any other shop) -then they might get the message and cop on they have real competition like every other retailer.

And before somebody goes on about legally required pricelists in all pubs remember they are very basic, they only have to list the price of one stout, one lager etc, although in this case the price of guinness is usually listed as the one required stout.

I would like to also point out that there are no visable price lists on display in the Oak Cafe Bar for food or drink.

Then put in a formal compaint, I am not sure who to go to though
http://www.nca.ie/howtocomplain
they just have template letters but also a lo-call number
Helpline lo-call 1890 432 432

Fighting Irish

sonofabeach wrote: »

I've just returned to Ireland after spending Christmas in England.Like most Irish men I had to have a pint of Guinness when I landed in Dublin Airport. I went to the bar on the arrivals floor in the new terminal. I was charged €5.30 for the pint.When I had been in the same bar when I was going out the same pint was €5. I asked the man behind the bar about the increase and he said it was because of the VAT increase.
Someone correct me if I'm wrong but is'nt 2% of €5= ten cent.I returned thre pint and asked for my money back. I decided to have a cup of coffee while waitng for my lift.The coffee was €2.90. I asked the barman why was the coffee only €2.40 when I departed? Vat increase was the answer.
Again I stand to be corrected but I thought food stuff was not included in the increase and even if it is a 50cent jump in price is a lot more than 2%.
I know that the bars/cafes/shops etc are not run by the DAA but surely they must have some control over the price structure.
I gave the coffee back and again asked for a refund.I will not be ripped off any more in Dublin Airport. In future when I fly I wil go straight to my boarding gate and wait to eat or drink untill I get wher I'm going.And if I feel the need for a pint or a coffee before I fly I'll go to a local pub or coffee shop before I go to the airport.
I did a little reserch before I left,other inreases in the Oak Bar on the arrivals floor in Terminal 2 all run between 6% and in the case of a packet of crisps 40%.A €2.20 bottle of water is now €2.40.
someone really needs to ask questions about the levels of these increase. I have emailed the DAA and my local TD to voice my concern about this.

They can charge what they want

sonofabeach

:eek:

rubadub wrote: »

I wish everybody would simply get in the habit of asking the price of pints, just like most other goods & services they buy. This pint is either going to be hidden & get a new head and be served up to some other poor unfortunate, or dumped and prices increased to cover these wastage costs.:eek:



If more people went into pubs and asked prices and left when they heard it was too high, (just like any other shop) -then they might get the message and cop on they have real competition like every other retailer.

And before somebody goes on about legally required pricelists in all pubs remember they are very basic, they only have to list the price of one stout, one lager etc, although in this case the price of guinness is usually listed as the one required stout.:eek:

:cool:Looks like you have not read all the posts here or else you've missed my point. I DID complain to the DAA and to my local TD(I have received an email back saying that she will follow up). Also it is not the price that bothers me but the fact that a 2% Vat increase was used by greedy people to make a 6% increase. I've also got an email from the DAA to say that all the prices have been returned to the price before the increase and that all retailers in the airport are carrying the cost of the 2% increase themselves.
As for price lists

---

A nine item price list (3beers 3 spirits 3 minerals)must be displayed in large writing alongside a detailed price list that include all itemson sale.

Then put in a formal compaint, I am not sure who to go to though
http://www.nca.ie/howtocomplain
they just have template letters but also a lo-call number
Helpline lo-call 1890 432 432

Panrich

mathepac wrote: »

€5 / 1.21 = €4.13 the pre-VAT price
€4.13 X 1.23 = €5.08 the "new" VAT inclusive price as calculated above.

Are you employed by the Dept of Finance by any chance?

Unlikely, I'd say.

The sums are worked out correctly and explained in simple, easy to understand format, without a hint of condescension or a threat in sight.