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Apple's UK prices rise after VAT increase

by Chris Rawson Jan 3rd 2011 at 11:00PM

Several European countries saw their online Apple stores go down for several hours earlier today, with the familiar yellow sticky note greeting customers in the UK, France, Spain, Portugal, Italy and others. Some speculated this meant a new product launch, but stores in Asia/Pacific and North America remained up all day. It turns out that in at least one country, the UK, something new did debut on the Apple Store today: higher prices. The increase in the UK's value-added tax (VAT) from 17.5 percent to 20 percent went into effect today, and Apple has raised its UK prices to account for the difference.

In some cases the price rise is relatively modest. A 16 GB iPhone 4 now costs £11 more than it used to, while a 16 GB Wi-Fi iPad costs £10 more. However, MacBook Pro and iMac prices have increased by a minimum of £21, and a Mac Pro will now cost a minimum of £42 more.

Some had expected Apple to eat the cost of the VAT increase and keep its UK prices the same, but a recent GST increase in New Zealand from 12.5 percent to 15 percent saw Apple raising its prices here, too. Though Apple will surely cite "margin preservation" in defense of raising its prices, Apple already charges more for its products in countries outside the US. While there may be economic reasons for doing so, that's hardly comforting to international customers.

It's unclear why the other European stores had to be taken down for a UK price hike; if prices have also risen in your country today, let us know in the comments.

[via Mac Rumors]



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28 Comments

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heretique

We have had VAT increase in Poland too, from 22% to 23%. Despite that most (if even all) resellers here kept gross price at the same level - perhaps not to scare customers away.

Perhaps that's because our purchasing power is still much lower than in western countries.

January 04 2011 at 4:27 PM Report abuse rate up rate down Reply
Odineye

To echo another post above - this is a tax increase, not a price increase.

Apple choosing not to "eat" the tax increase does not constitue an increase in the price of Apple products.

January 04 2011 at 8:32 AM Report abuse rate up rate down Reply
3 replies to Odineye's comment
Allister

Apple did lower their prices when VAT dropped to 15%. However, a new MacBook came out just after it and its price was £799. When vat went back to 17.5%, that price went up to £816.

Was the same for all their products.

The sad thing is, everyone complains about it, but you voted for them to win the election. Not like Scotland. One Tory got in here. We are hit with taxes that England imposes. What a joke.

January 04 2011 at 5:50 AM Report abuse rate up rate down Reply
2 replies to Allister's comment
Matt J

Not all the constituencies in England elected Tories. Should all those places be exempt from increased VAT too?

January 04 2011 at 7:12 AM Report abuse rate up rate down Reply
TheCastro

That would be awesome. Why should they be subject to the majority vote of a party they didn't elect? And a lot of my family is Scottish, through Canada, so of course I'm pro Free Scotland. (And so is Sean Connery)

In the US some people choose to live in states based off of their sales taxes, income, taxes, property taxes, or lack there of. Heck, in Maryland they had to make a no sales tax on school supplies (clothes, binders, papers, you get the idea) week because people travel up to PA where they don't have taxes on clothes anyway and had no taxes on supplies.

January 04 2011 at 9:40 AM Report abuse rate up rate down Reply
nILS FRANKE

Portugal VAT increase of 2% to 23% ... so now the iPAD 16 GB Wifi is 508 Euro from previous 499 Euro

January 04 2011 at 5:29 AM Report abuse rate up rate down Reply
Peter Knapp

"Destroyer of economies— annihilator of prosperity"

Did VAT cause the financial crash of 2008 then?

January 04 2011 at 5:27 AM Report abuse rate up rate down Reply
1 reply to Peter Knapp's comment
ilkyone

Yes, the VAT should be applied to flash trading on commodities and derivatives, but it isn't.

Thus, an entire, and very large segment of the sales are ignored in favor of shifting the tax burden on you and me while letting the people who speculate against our commodities get off tax free.

Yes, the VAT caused the crash because it ignores derivatives. If the VAT were properly applied to derivatives, there'd have been no crash because the crash was caused from shorts. Shorts that were more easily placed and flash traded because there's no transactional taxing of them thereby making it free to game the market.

January 04 2011 at 11:32 AM Report abuse rate up rate down Reply
Funeral Urns

It's not a good news for Apple lover. But this time is happened due to increase of VAT. It's necessary. Now following new rate, thanks for this information. Industrial flooring

January 04 2011 at 5:19 AM Report abuse rate up rate down Reply
trickbox

Funny, when the previous Government lowered VAT from 17.5% to 15% between 2008/9 I didn't notice Apple reducing their prices.

January 04 2011 at 4:24 AM Report abuse rate up rate down Reply
1 reply to trickbox's comment
Mr Lizard

Well said

January 04 2011 at 5:49 AM Report abuse rate up rate down Reply
Holy

Prices didnt change on the luxemburgish apple store - no VAT increase for us either ;-)

January 04 2011 at 3:17 AM Report abuse rate up rate down Reply
iDriano

In Switzerland Apple absorbed the VAT increase. No wonder, it only increased by 0,4%...

January 04 2011 at 1:58 AM Report abuse rate up rate down Reply
Lady Whimsy

The UK is not a country, I'm pretty sure ;). I believe it's a group of countries.

January 03 2011 at 11:57 PM Report abuse rate up rate down Reply
6 replies to Lady Whimsy's comment
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