Retailers make VAT pledge

Ben Parfitt
Retailers make VAT pledge

Retailers have adjusted the price of games following the VAT rise.

With margins already tight, stores have passed on the increase to customers to maintain profit.

GAME, Gamestation, HMV and Argos are among the High Street retailers which have raised prices, while online firms Amazon, Play and ShopTo have also added the extra 2.5 per cent VAT to certain games. But retail has promised to keep increases to a minimum.

A HMV spokesperson told MCV: “We’re doing our best to minimise the impact on customers by spreading the rise across the range of products that we stock – including games.”

ShopTo marketing manager Phil Driver added: “We have incorporated the VAT rise into our pricing model. Wherever possible ShopTo has only increased pricing by tiny amounts and in some cases absorbed VAT increases.”

MCV understands the rise in VAT has mainly affected the price of consoles, bundles and other gaming hardware, but certain games have also risen in price.

A GAME spokesperson said: “We are working hard with our suppliers to minimise the impact of the VAT rise on product prices.”

But independent retail chain CHIPS has kept its prices the same.

“From the consumers’ point of view they won’t notice much anyway,” said MD Don McCabe. “However, you might see less discounting on new games.”

VAT rose from 17.5 per cent to 20 per cent on Tuesday, January 4th as part of the Government’s plans to cut debt.

Many indies have condemned the VAT rise.

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Tags: Retail , video games , increase , vat , swallow

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