Here comes the long-announced and dreaded rise in the VAT rate from 4% to 10% applied to the sale of food and beverages dispensed by automatic vendors positioned in public and community buildings (factories, offices, schools, hospitals). The VAT rise has huge ramifications for the vending sector – all the most important vending trade media and associations are discussing it. What can be done to take some of the bitterness out of the coffee break?
As 2014 is well underway and already the New Year has presented an important challenge for our sector. Thanks to the VAT increase, the users of automatic vendors will have to pay an average of 5 cents more on their hot beverages and up to 10 cents more on other products.
This will obviously have a significant impact on consumers who, just a few months from the VAT rate increase to 22% on many common retail goods, find their tax burden further increased on their out-from-home purchases. It’ll have a real impact on vending operators too, thanks to the need to effect a rapid re-pricing of all the products on sale…
We’ve all got to get on with it, but to make it as painless as possible, N&W provides operators with the Mizip cashless payment system, which enables them to update prices easily, in no time at all… To find out more, please visit the download area of our website http://www.nwglobalvending.com/download
What’ more, the Confida Association has provided informative stickers for machines, explaining to consumers that the increases aren’t down to operators: they are, on the contrary, a direct result of government financial policy.