Strange VAT thing

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Discussion

Kiltie

Original Poster:

7,504 posts

246 months

Tuesday 9th September 2014
quotequote all
I bought a GoPro accessory online and here's what it said at checkout.



I paid with PayPal and here's the confirmation email.



Then I get the invoice and here's what it looked like.



Can anyone explain what's going on with the VAT?

I assumed that the £71.99 was inclusive of VAT and that's all I paid.

It would appear from the invoice that they're going to pass on more VAT than they've taken off me.

confused

TheEnd

15,370 posts

188 months

Tuesday 9th September 2014
quotequote all
There wasn't any VAT, so it's £14.20 VAT, aka 17.91Eur on top.

marshalla

15,902 posts

201 months

Tuesday 9th September 2014
quotequote all
Naughty of them. Prices shown to retail customers should include VAT.

http://www.tradingstandards.gov.uk/cgi-bin/glos/bu...

Edited by marshalla on Tuesday 9th September 21:41

Kiltie

Original Poster:

7,504 posts

246 months

Tuesday 9th September 2014
quotequote all
TheEnd said:
There wasn't any VAT, so it's £14.20 VAT, aka 17.91Eur on top.
Yes but I didn't pay the £14.20. I paid the net amount.

DaveH23

3,236 posts

170 months

Tuesday 9th September 2014
quotequote all
What site did you buy it off? Can you post a link to the advert?

Without seeing the full advert its difficult to say as it looks like you have either wrongly assumed it was inclusive of Vat or the it was a badly written advert.

The invoice shows the net price exclusive of vat then the vat seperately as both a GBP and EUR value.


Kiltie

Original Poster:

7,504 posts

246 months

Tuesday 9th September 2014
quotequote all
marshalla said:
Naughty of them. Prices shown to retail customers should include VAT.

http://www.tradingstandards.gov.uk/cgi-bin/glos/bu...
Thanks.

I don't think I'm out of pocket though.

Kiltie

Original Poster:

7,504 posts

246 months

Tuesday 9th September 2014
quotequote all
DaveH23 said:
What site did you buy it off? Can you post a link to the advert?

Without seeing the full advert its difficult to say as it looks like you have either wrongly assumed it was inclusive of Vat or the it was a badly written advert.

The invoice shows the net price exclusive of vat then the vat seperately as both a GBP and EUR value.
Here you go. smile

Puggit

48,439 posts

248 months

Tuesday 9th September 2014
quotequote all
It's a US website

mattdaniels

7,353 posts

282 months

Tuesday 9th September 2014
quotequote all
marshalla said:
Naughty of them. Prices shown to retail customers should include VAT.

http://www.tradingstandards.gov.uk/cgi-bin/glos/bu...

Edited by marshalla on Tuesday 9th September 21:41
Not necessarily - you're making an assumpion it's an EU business selling to an EU resident.

Note that in the first screenshot the figures show "Estimated total" - I suspect that's because it can't show an actual total (ie. inc. any sales tax) until it knows where the customer is.

marshalla

15,902 posts

201 months

Tuesday 9th September 2014
quotequote all
mattdaniels said:
Not necessarily - you're making an assumpion it's an EU business selling to an EU resident.

Note that in the first screenshot the figures show "Estimated total" - I suspect that's because it can't show an actual total (ie. inc. any sales tax) until it knows where the customer is.
non-EU businesses shouldn't (as far as I know) be charging VAT, should they ?

(and they do know where the customer is - they've already asked him at the top of that screen).

The Moose

22,847 posts

209 months

Tuesday 9th September 2014
quotequote all
marshalla said:
mattdaniels said:
Not necessarily - you're making an assumpion it's an EU business selling to an EU resident.

Note that in the first screenshot the figures show "Estimated total" - I suspect that's because it can't show an actual total (ie. inc. any sales tax) until it knows where the customer is.
non-EU businesses shouldn't (as far as I know) be charging VAT, should they ?

(and they do know where the customer is - they've already asked him at the top of that screen).
Depends on their turnover in UK I believe (for this example)

marshalla

15,902 posts

201 months

Tuesday 9th September 2014
quotequote all
The Moose said:
marshalla said:
mattdaniels said:
Not necessarily - you're making an assumpion it's an EU business selling to an EU resident.

Note that in the first screenshot the figures show "Estimated total" - I suspect that's because it can't show an actual total (ie. inc. any sales tax) until it knows where the customer is.
non-EU businesses shouldn't (as far as I know) be charging VAT, should they ?

(and they do know where the customer is - they've already asked him at the top of that screen).
Depends on their turnover in UK (for this example)
OK - top of the first screen, they know he's in UK - so could have quoted VAT at that point if they have to charge it (also implied by the fact that the price is in Sterling rather than dollars, euro or bevvies (as the Scottish currency is likely to be called)).

Bottom of the Paypal screen, the contracting entity is Moduslink BV which is a Netherlands company - ergo EU, ergo EU VAT & price marking rules should be applied.

Kiltie

Original Poster:

7,504 posts

246 months

Tuesday 9th September 2014
quotequote all
marshalla said:
... or bevvies (as the Scottish currency is likely to be called)

rpguk

4,465 posts

284 months

Tuesday 9th September 2014
quotequote all
Yes but the customer has paid the ex-VAT amount and I don't think they'll have any mechanism to recover the VAT.

I guess it's a bug, did the invoice which shows VAT come through at the same time as the order? Another option, unlikely though, but maybe they passed the VAT threshold around the time you ordered and updated their systems accordingly but in such a way that doesn't take into account the VAT status at the time? I guess they'll have to take it on the nose anyway.

marshalla

15,902 posts

201 months

Tuesday 9th September 2014
quotequote all
rpguk said:
Yes but the customer has paid the ex-VAT amount and I don't think they'll have any mechanism to recover the VAT.

I guess it's a bug, did the invoice which shows VAT come through at the same time as the order? Another option, unlikely though, but maybe they passed the VAT threshold around the time you ordered and updated their systems accordingly but in such a way that doesn't take into account the VAT status at the time? I guess they'll have to take it on the nose anyway.
They could still cancel the order under the Consumer Contract Regulations (replacement for DSRs) - or equivalent implementation of the Consumer Rights Directive depending on where the contract is formed, if they have their wording right.

rpguk

4,465 posts

284 months

Tuesday 9th September 2014
quotequote all
The Paypal confirmation is from 30 Aug so I guess it's been delivered and the VAT invoice was physically included.

Kiltie

Original Poster:

7,504 posts

246 months

Tuesday 9th September 2014
quotequote all
Timeline as follows.
  • Order placed on 30/08/14.
  • PayPal transaction complete 30/08/14.
  • Invoice date 08/09/14.
  • Invoice received 08/09/14.
  • Item not yet received as at 09/09/14.

Sheepshanks

32,752 posts

119 months

Tuesday 9th September 2014
quotequote all
Why didn't you buy from here (I Googled it before I saw you posted a link and it's the first hit): https://www.gpdealer.co.uk/gopro/store/product/gop... £10 cheaper and free next day delivery?

H_Kan

4,942 posts

199 months

Tuesday 9th September 2014
quotequote all
I don't remember the VAT rules from the top of my head, but as an EU business, if they are VAT registered then they need to charge VAT their country/ UK rates.

To be honest, given that the customer wouldn't know if they are above the VAT threshold, I would imagine the onus has to be on them to inform the customer of VAT on a sale.

The fact that the charged you only the net and then issued this invoice suggests something is amiss with their systems!

TheEnd

15,370 posts

188 months

Tuesday 9th September 2014
quotequote all
Kiltie said:
TheEnd said:
There wasn't any VAT, so it's £14.20 VAT, aka 17.91Eur on top.
Yes but I didn't pay the £14.20. I paid the net amount.
Hmmm..
I wonder if it will come as customs charges