Priced quoted ex VAT to the public, is it legal?

Priced quoted ex VAT to the public, is it legal?

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Discussion

lbc

3,215 posts

217 months

Monday 15th September 2014
quotequote all
I always ask if a price includes VAT, as garages and part dealers often quote a price without VAT.

jellypig

112 posts

147 months

Monday 15th September 2014
quotequote all
Sorry, can I ask for clarification.

97% of what we do is for businesses and all my quotes say "All complete for the sum of £ XXX.XX Plus VAT"

2-3% is domestic. Maybe not even that. Certainly its less than that in terms of turnover, if not in "total number of projects"

We have a job next week, it install services in a large garage at a domestic property. (Its big for "domestic" purposes, my guess is its a workshop)
How am I to know if its for a "hobby" or for them to run a small business?
(Certainly there is too much going in for it to be a garage for their car, there's twice as many sockets as even I've got in my garage)

And its a good example of the sort of projects that <might> be domestic.

I'm content my wording is very clear.
I'm concerned that if I chop and change mistakes will happen. (ie I know every spreadsheet, every quote, every calculation is Ex-VAT - I dont even calculate the VAT at quote stage)

Am I contravening stuff?




plasticpig

12,932 posts

225 months

Monday 15th September 2014
quotequote all
Mojooo said:
Its a lesson you dont need to learn as the law says prices should be quoted inc VAT when goods or services are provided to consumers.

If the business wnats to sell ex VAT they should not deal with consumers.

http://www.legislation.gov.uk/uksi/2013/3134/regul...

http://www.legislation.gov.uk/uksi/2013/3134/sched...

and the law makes it an offence

http://www.legislation.gov.uk/uksi/2008/1277/regul...

whether your local Trading Standards has enough staff left to deal with such matters is another matter
yes This happened to me. Garage quoted for a lot of work on a car which I accepted. Got the bill which was way higher than the quote because they had quoted ex vat. Quite a bit of discussion ensued but I ended up paying what I had been quoted as I knew it was illegal to quote me without including VAT.



Mave

8,208 posts

215 months

Monday 15th September 2014
quotequote all
jellypig said:
Sorry, can I ask for clarification.

97% of what we do is for businesses and all my quotes say "All complete for the sum of £ XXX.XX Plus VAT"

How am I to know if its for a "hobby" or for them to run a small business?
Am I contravening stuff?
If you're explicitly stating "plus VAT" then I don't see why anyone could be any doubt. HTH :-)

Steve H

5,280 posts

195 months

Tuesday 16th September 2014
quotequote all
If I'm discussing costs with a retail customer and using a plus VAT figure I'll generally give an estimated figure inc VAT even if it isn't an exact calculation; this isn't to comply with the law, it's to make my life easy as no matter how clear or specific you are, a large part of the population will either ignore or massively underestimate the cost of VAT if they are given a figure plus VAT.

Generally I just try to give an all inclusive figure as people will only remember the figure they are given so it saves issues afterwards.

jellypig

112 posts

147 months

Saturday 27th September 2014
quotequote all
Mave said:
If you're explicitly stating "plus VAT" then I don't see why anyone could be any doubt. HTH :-)
Thanks. Thats what I thought.

By convention every single calculation, quote, supplier price etc etc on my work computer is ex-VAT - and I know that, so when I have to dig out a 12month old document I don't have to remember if is or isn't, and that's why I don't want to change for the sake of such a small percentage of output.

We've done that garage now, and it was for a business.

Mojooo

12,720 posts

180 months

Saturday 27th September 2014
quotequote all
Apart from the fact the alw says prices should be quited inclusive of VAT - not ex VAT and tell them they have to work it out for themselves.

Thi was mroe an issue when it was 17.5%

I spose at 20% at least most customers will work out they need to pay 20% more and probably be able to work out what 20% extra.