For the past few days since I am in London I have been noticing that most of my receipts don't have the VAT mentioned on them. Some places even have a sign saying they won't be charging VAT which I never bothered to read.
Something that I have been monitoring here from the first day is that I haven't seen that much tourist like before. Speaking to a few business man here some say that their business have been effected badly the others say they are still in better hands if not the best.
Yesterday while shopping around the lady at Selfridges mentioned that "Sir, the price is without VAT". I was quite surprised so I asked her the reason behind it. She said with the present economy crises the Tax department in UK have decided not to charge any more tax as of 1 December 2008 till further notice to give some boost to the business. She also mentioned that the prices will be increasing as of 1st March 2009. I don't know how much true is that but I think if anyone of you is visiting UK now its a good time to shop. They have some great deals on products.
UPDATE: I was informed wrong!!!!!@@!!!!! I went to purchase a wallet from Mont Blanc today and the salesman there informed me that no one can do that and we still have to collect the VAT from the airport. The only difference is that it has been reduced from 17.5% to 15%.