VAT Rate Is Behind The Costly Price Of The Apple iPad

8 June 2010, 10:27

You must have been living under the proverbial rock for the past few months not to have heard about the new launch of the Apple iPad. But whatever you think about this particular piece of kit from Apple, the biggest news is arguably the prices that buyers in the UK have had to pay for it.

The opinions are divided as to whether this iPad is worth buying in the first place anyway. But other than that the question of price rests largely on the application of VAT where this particular item is concerned.

Here in the UK most goods are subjected to VAT, no matter what they are or how much they cost initially. Since the rate at the moment is sitting at 17.5%, this can add a lot onto the price of an item when you buy it. But there is speculation that the rate of VAT could soon rise to 20% in order to try and pay for some of our huge national debt. Everyone knows this must be dealt with, and a rise in VAT could be one of the best ways to do it.

But as far as buyers of the Apple iPad are concerned, a rise to 20% would mean the price for the iPad goes even higher. There have already been many news stories about the prices for the iPad being a lot steeper in the UK than they are in the USA. We are quite right to be annoyed about this, because after all we are getting exactly the same piece of equipment that everyone in the US is buying. All that is happening is that we have to pay more for the privilege of owning one.

Some people are trying to get the public to boycott Apple by not purchasing an iPad. The idea is that if we all did this they would have to put the prices down. But then of course VAT would still have to be added, so in terms of the VAT aspect nothing would change.

Some people may be tempted to buy one now in case the rate of VAT should indeed go up. If it did there would have to be some degree of notice given anyway, so if you are considering buying an Apple iPad, make sure you keep an eye on the news. You might save money by buying fast if you need to.