Legal to charge VAT?

[welland99]

I saw some car bits advertised on ebay before Christmas and the seller was a commercial breaker. All the parts they were selling were advertised with a price which included VAT. Delivery was quoted as an extra price, again including VAT.

I entered into discussion about a part they were advertising and it subsequently turned out to be unsuitable. But they offered me a suitable alternative and quoted a price by email, also showing the price for carriage, but there was no mention of VAT for either the part or the carriage.

I ordered the parts by phone and paid by credit card. Now the Credit card bill has arrived and the charge is different to the quote.

The quote was for £70 plus £17.50 carriage. Total £87.50

The invoice shows a charge of £70, plus £16 for carriage, plus VAT for both. Total £98.90.

Am I right to request a refund for the difference £11.40, or are they right to charge what they did?

I have just sent them an email pointing out the 'error' and requesting refund, but wondered if I'd be justified in pressing them harder if they at first refuse?

 

[Seamster15]

Whats the invoice date? if before Jan 1st 2010 then 15% if after then 17.5% simples!

 

[renault12ts]

When supplying to the public rather than to a business I would expect VAT to be mentioned not ex vat as in business. Ask for a refund...they will probably say no. You live and learn. I think its sharp practice.

 

[welland99]

Whats the invloice date? if before Jan 1st 2010 then 15% if after then 17.5% simples!

Invoice was dated in december, and the correct rate has been appliled. But that is not my point.

I was thinking that they should not have added VAT because I thought it was included in the quote.

 

[renault12ts]

^ I agree.

 

[gina2201]

I'd email them and say you were disappointed etc, see if they will refund you as it wasn't clear in your quote, I would have thought a quoie is exactly that, the figure you will pay for an item/service. Worth a try?! Surely their quote should have stated 'plus VAT' if VAT was to be added.

 

[Mudster]

I'm reasonably sure they've breached distance selling laws by not stipulating the price including VAT.

i.e. £100 + vat (£117.50).....

A format similar to the above should be used.

This isn't optional either or subject to "sorry I made a mistake".

Regulations available HERE

 

[st4]

If the parts came off a broken car, then they are deemed 2nd hand, and as VAT was paid on the new car (with all its parts) then why should it be paid again?

 

[Seamster15]

Invoice was dated in december, and the correct rate has been appliled. But that is not my point.

I was thinking that they should not have added VAT because I thought it was included in the quote.

Sorry, my eyes deceive me its late!

 

[Mudster]

If the parts came off a broken car, then they are deemed 2nd hand, and as VAT was paid on the new car (with all its parts) then why should it be paid again?

You can take that up with HMRC but you won't get far I'm afraid.

 

[LTD]

If the parts came off a broken car, then they are deemed 2nd hand, and as VAT was paid on the new car (with all its parts) then why should it be paid again?

Because them thar the rules

 

[Stratman]

If the parts came off a broken car, then they are deemed 2nd hand, and as VAT was paid on the new car (with all its parts) then why should it be paid again?

Because the government gets two lots of lovely tax.



Simples.

 

[LTD]

They should have provided you with a receipt and copy of the CC transaction with your item.

Speak with your CC company for advice

 

[gina2201]

They should have provided you with a receipt and copy of the CC transaction with your item.

Speak with your CC company for advice

Does it not have to be over £100 for them to intervene or take it up? That was my understanding but I may be wrong.

 

[welland99]

They should have provided you with a receipt and copy of the CC transaction with your item.

Speak with your CC company for advice

They did do that, but these matched with the charge, not the quote.

(Actually, I forgot to look at the invoice and CC receipt when they arrived with the goods. Just noticed the discrepancy tonight. )

I'll try speaking to the CC company if I don't get anywhere, but as gina wrote, I think there might be a magic £100 limit of which I have fallen short by £1.10.

 

[Benzowner]

I run a company and all of our telephone quotes and written quotes are plus VAT. It is a competetive market and if goods were sold inc. they may not appear as good a price as the competition. Normally, we are asked if the price includes VAT and we obviously say no, VAT is extra. It is probably written down in their terms and conditions of sale and it would be deemed your fault that you did not ask to see that before making your purchase. I don't agree with it, but that is the way business is carried out.

 

[Mudster]

It is probably written down in their terms and conditions of sale and it would be deemed your fault that you did not ask to see that before making your purchase.

It is now (and has been for a while) a legal requirement to state the price including VAT (even business to business which is why places such as Makro have to display prices including and excluding).

You can state it without or say "that's £100 + vat" but you absolutely must provide a figure including VAT.

It isn't optional and trading standards are pretty aggressive pursuing this.

 

[nick mercedes]

It is now (and has been for a while) a legal requirement to state the price including VAT (even business to business which is why places such as Makro have to display prices including and excluding).

You can state it without or say "that's £100 + vat" but you absolutely must provide a figure including VAT.

It isn't optional and trading standards are pretty aggressive pursuing this.

"Q I sell mainly to tradesmen. Do I have to display prices inclusive of VAT?

A Prices may be indicated exclusive of VAT at an outlet or through advertisements from which most of your business is with business customers. If you also conduct business at that outlet or through these advertisements with consumers, however, you should make it clear that the prices exclude VAT and you should:

(a) display VAT inclusive prices with equal prominence, or:
(b) display prominent statements that the quoted prices exclude VAT and state the apprpriate rate. It should be noted that VAT inclusive prices for all goods offered by traders to consumers are required by the Price Marking Order 2004."

Trading Standards - FAQs - Fair Trading

 

[flango]

It is now (and has been for a while) a legal requirement to state the price including VAT (even business to business which is why places such as Makro have to display prices including and excluding).

You can state it without or say "that's £100 + vat" but you absolutely must provide a figure including VAT.

It isn't optional and trading standards are pretty aggressive pursuing this.

Are we just talking DSR here or general sales because as far as I am aware it is still perfectly legal to give a price of say £26.50 + VAT in certain business to business transactions, not sure about public transactions and will consult SWMBO for that one.

As for Trading Standards they wouldn't know their ar*se from their elbow on this one, never ceases to amaze me the ammount of cr*p advice they give out and just how much of the public's money they waste by bringing prosecutions that have no chance of succeeding and are either dropped at the last minute or lost in court. It is one of the biggest frustrations of lawyers and solicitors that have to represent them and most good ones will do anything to avoid a TS case, the result lots of Junior lawyers trying to be big shots upsetting magistrates and Judges.

 

[nick mercedes]

Are we just talking DSR here or general sales because as far as I am aware it is still perfectly legal to give a price of say £26.50 + VAT in certain business to business transactions, not sure about public transactions and will consult SWMBO for that one.

B2B transactions just need to state that prices are plus VAT and state the VAT rate somewhere.

Businesses that sell to consumers need to display VAT inclusive prices.

Obviously theres some crossover sometimes, but such is life.

If in any doubt it's best to ask if a quote includes vat.