Displaying VAT

[ferret]

Hi,

 

I recently bought 2 military vehicle rear lights from a UK trader advertising on Milweb. The lights were priced at £25each. So I phoned the seller and paid by card, the chap mentioned adding postage but that's all.

 

The lights turned up quickly with no problems!

 

When I checked my bank account a couple of days later I was shocked to find I had been charged £74.40.

 

I contacted the seller to find out why I had been charged £24.40 for postage!

 

The seller says its not just postage but VAT as well. I asked why! " well we are a business, we always charge VAT".

 

I don't have a problem paying tax, I just think I should have been told!

 

The lights that I thought were a reasonable price turned out to be expensive.

 

Anybody else had this? Any advice?

 

Chris

[N.O.S.]

Have a look at the website - if there is no mention anywhere - even in the small print - of VAT (e.g. 'VAT will be added to all prices') then I would certainly not accept it, a case for Trading Standards?

 

It is no excuse to say 'we are a business therefore we charge VAT' as many businesses are not registered for VAT as they operate below the turnover threshold for registration.

[ferrettkitt]

Don't leave it to long as from memory the distance selling regs might apply and you can ask for you're money back and shop elsewhere

 

http://whatconsumer.co.uk/mail-order-distance-selling-know-the-facts/?utm_source=adcenter&utm_medium=cpc&utm_term=distance%20selling%20regulations&utm_campaign=BingPPC

[RecyMech]

Be sure to check his site & any paperwork for a VAT number, if he's charging vat then he is legally required to provide a vat reciept on demand & cannot refuse to do so.

 

If he's charging vat but is not actually vat registered then he's in deep do-do....a quick call to HMRC is in order. Don't just swallow it mate, follow it up....you might be about to nail a wrong'en.

 

H

[Runflat]

The Price Marking Order 2004 (Statutory Instrument 2004/102) applies to the sale of goods other than goods supplied with a service, sold by auction or that are works of art or antiques. A copy can be found here: http://www.legislation.gov.uk/uksi/2004/102/contents/made

 

There's been a slight amendment to it (by SI 2009/3231) in relation to changes in the VAT rate. Although that is of no real consequence here, the consultation document before then gave a little background to the overall rules: http://www.bis.gov.uk/files/file53309.pdf

 

The Consumer Protection (Distance Selling) Regulations 2000 (SI 2000/2334), as amended by SI 2005/689, contains the rules relating to information required prior to the conclusion of a distance selling contract - in particular, Regulation 7(1)(a)(iii) says the supplier shall provide the consumer with the price of the goods or services including all taxes...

 

The obligation to provide VAT invoices is set out at regulation 13 of the VAT Regulations (SI 1995/2518) - put simply there isn't an obligation to provide a VAT invoice in relation to supplies made to people in their private (rather than business) capacity. That said most businesses will provide a VAT invoice as routine.

Edited June 1, 2013 by Runflat
Added Distance Selling Regs.

[ferret]

The Price Marking Order 2004 (Statutory Instrument 2004/102) applies to the sale of goods other than goods supplied with a service, sold by auction or that are works of art or antiques. A copy can be found here: http://www.legislation.gov.uk/uksi/2004/102/contents/made

 

There's been a slight amendment to it (by SI 2009/3231) in relation to changes in the VAT rate. Although that is of no real consequence here, the consultation document before then gave a little background to the overall rules: http://www.bis.gov.uk/files/file53309.pdf

 

The obligation to provide VAT invoices is set out at regulation 13 of the VAT Regulations (SI 1995/2518) - put simply there isn't an obligation to provide a VAT invoice in relation to supplies made to people in their private (rather than business) capacity. That said most businesses will provide a VAT invoice as routine.

 

I didnt get an invoice! but it was more around the fact that the didn't display +vat

 

I found this on the HMRC website.

 

"Products advertised in outlets, magazines, on the internet, or shown in catalogues, price lists and other literature may be aimed at the consumer, businesses, or both. If they're only meant for the general public, they'll show you a price including VAT. This is a legal requirement.

 

If they're aimed at both consumers and businesses, they will usually show a VAT inclusive price, but may also show a price without VAT. The VAT inclusive price must be given equal importance."

 

The seller has offered me a refund if i return the items, but i will be out return postage!! The guy got very arsey about it. Said he wasn't going to argue about it.

 

The items were obviously offered retail! so should inc VAT.

 

The company is RR services I spoke to Kerry Cheese. Anybody else had issues.

 

Chris

[gas 44]

This seems to be common practice within this hobby.

Most traders if not all will give you a price WITHOUT vat unless you ask. Its not a scam in most cases, it simply makes their products seem cheaper.

I'm not sure what % of sales are to trade and what are to the general public, it would be interesting to know.

Its easy these days to spend say £150, only to find when the bill arrives its accutally a lot more,of course vat is then normally added to postage too.

I'm not moaning, vat has to added by any business with a reasonable turn over BUT it would be nice to be made aware earlier.

Has anybody noticed any dealers who advertise on on Milweb state the prices are plus VAT

I'm VAT registered within my field but i make sure from the start my customers understand this.

BTW I cant claim my vat back on MV parts GRRRRRRRRR :cry::cry::cry::cry:

Edited June 1, 2013 by gas 44

[john fox]

 

The company is RR services I spoke to Kerry Cheese. Anybody else had issues.Chris

YES, but not ones that can be posted on a public board. I no longer use his "services"

[beepbeep]

The company is RR services I spoke to Kerry Cheese. Anybody else had issues.

 

Chris

 

I had exactly the same experience as you. My order arrived promptly but when my credit card statement arrived another £50 had been added to what I'd been expecting to pay. I rang up to query and was told that it was VAT.........no mention of that when I placed the order or on the website......not acceptable and I certainly won't deal with him again.

[N.O.S.]

I see that a 'plus vat' has now been added to the milweb advert for lights

[BarrieT]

Yes;

Had a similar experience with the afore mentioned company !

I just accepted it, perhaps I shouldn't have done........

 

Barrie.

[gas 44]

If any company displays their price not including vat and then add it after the sale then they MUST advise the buyer, prior to a contract agreement (ie a sale) FACT.

They should also provide either an invoice or receipt CLEARLY showing their vat number and the amount of vat charged.

I must admit MOST dealers I have purchased from do this BUT I always ask "is that + vat or inc vat"

Its interesting, lets visit this again say after W&P and see who bought what and who got a VAT receipt for their purchase I for one have never been given or offered a receipt of any kind....to be honest I'm not bothered.As I trust the people I deal with.

I understand vat needs to be paid in the same way I have to charge it simple.

To save any problems later just ask.