No VAT on a quote, do I have to pay.
Discussion
Following on from this thread has raised the question below.
https://www.pistonheads.com/gassing/topic.asp?h=0&...
If you receive a quote without VAT as a consumer not trade or business to business for work to be done or goods, when you receive the invoice it may come as a shock that the final price is now 20% more.
Do you legally have to pay the higher amount if as a consumer your not quoted it? Also is there a law that also says that the people who quote have to do so with VAT, I assume Tesco would put the prices down 20% in the shelves to make goods look cheaper if they could.
All the above is on the basis that the quote nowhere mentions VAT.
https://www.pistonheads.com/gassing/topic.asp?h=0&...
If you receive a quote without VAT as a consumer not trade or business to business for work to be done or goods, when you receive the invoice it may come as a shock that the final price is now 20% more.
Do you legally have to pay the higher amount if as a consumer your not quoted it? Also is there a law that also says that the people who quote have to do so with VAT, I assume Tesco would put the prices down 20% in the shelves to make goods look cheaper if they could.
All the above is on the basis that the quote nowhere mentions VAT.
as a business, prices to consumers must highlight the full price including vat, either as one combined price or showing both... if a fixed quote is provided then that is the price you pay and they pay the vat from within that...
if they ask for more it is an issue of charging more than the quote, not a vat issue per se...
when we provide quotes to businesses we tend to talk in terms of time (hourly rate) or nett of vat, but we always mention that prices are then + vat
if they ask for more it is an issue of charging more than the quote, not a vat issue per se...
when we provide quotes to businesses we tend to talk in terms of time (hourly rate) or nett of vat, but we always mention that prices are then + vat
PAULJ5555 said:
Also is there a law that also says that the people who quote have to do so with VAT, I assume Tesco would put the prices down 20% in the shelves to make goods look cheaper if they could.
Most food is zero rated for VAT.“Food and drink for human consumption is usually zero-rated but some items are always standard-rated. These include catering, alcoholic drinks, confectionery, crisps and savoury snacks, hot food, sports drinks, hot takeaways, ice cream, soft drinks and mineral water.”
Source
https://www.gov.uk/guidance/rates-of-vat-on-differ...
Well the first problem is that it will be an estimate, not a quote. Every small trader I've come acorss only does estimates. If the document/estimate/quote makes no mention of VAT then you do not have to pay the VAT if it's included on the invoice. However, you may well find the invoice is 20% more than the estimate.
PAULJ5555 said:
Following on from this thread has raised the question below.
https://www.pistonheads.com/gassing/topic.asp?h=0&...
If you receive a quote without VAT as a consumer not trade or business to business for work to be done or goods, when you receive the invoice it may come as a shock that the final price is now 20% more.
Do you legally have to pay the higher amount if as a consumer your not quoted it? Also is there a law that also says that the people who quote have to do so with VAT, I assume Tesco would put the prices down 20% in the shelves to make goods look cheaper if they could.
All the above is on the basis that the quote nowhere mentions VAT.
Makro have the price without VAT on their shelf prices together with the VAT rate applicable. They are - in theory - a 'trade only' cash & carry & you have to provide proof that you are a business before they'll give you a card. You need to produce the card at their premises to get in & at the till.https://www.pistonheads.com/gassing/topic.asp?h=0&...
If you receive a quote without VAT as a consumer not trade or business to business for work to be done or goods, when you receive the invoice it may come as a shock that the final price is now 20% more.
Do you legally have to pay the higher amount if as a consumer your not quoted it? Also is there a law that also says that the people who quote have to do so with VAT, I assume Tesco would put the prices down 20% in the shelves to make goods look cheaper if they could.
All the above is on the basis that the quote nowhere mentions VAT.
Comes as a bit of a shock to some when they find that the bill is rather larger than they expected with the VAT on it! Not an issue for bona fide traders as we claim the VAT back anyway.
BertBert said:
I don't think you can not pay the VAT. Can can try to pay the equivalent lower price though as the first part of your post implies.
Bert
+1Bert
VAT applies whether it's there or not, if you're a consumer. Either the 20% is absorbed by the trader (unlikely) or the invoice is revised to include it. There is also the problem, as mentioned before, that a quote is a quote, not an invoice.
It is as simple and clear as this:
If a vat registered company quotes you, their quote must either say "net of vat", or , "plus vat" , or anything similar that makes it clear that vat will be added on. Quoting and just having a vat number on the quote footer is not good enough.
If you are quoted "£1500" and then get an invoice for £1800 then they are at fault for not making it clear the £1500 was net of vat . How were you to know if the invoice was net or gross? You would assume, as a consumer, gross.
If I quoted net and then charged vat, my customers would tell me to do one. That's deception.
My quotes show the full amount, with the vat element highlighted. When I quote casually by voice or email, it is £1500 plus vat
If a vat registered company quotes you, their quote must either say "net of vat", or , "plus vat" , or anything similar that makes it clear that vat will be added on. Quoting and just having a vat number on the quote footer is not good enough.
If you are quoted "£1500" and then get an invoice for £1800 then they are at fault for not making it clear the £1500 was net of vat . How were you to know if the invoice was net or gross? You would assume, as a consumer, gross.
If I quoted net and then charged vat, my customers would tell me to do one. That's deception.
My quotes show the full amount, with the vat element highlighted. When I quote casually by voice or email, it is £1500 plus vat
Durzel said:
+1
re, that a quote is a quote, not an invoice.
A quote is telling you how much you will pay. If they don't make it clear that vat will be added, you have been duped and should not pay it. There is no special "vat law", it is as simple as you should only have to pay what you have been quoted.re, that a quote is a quote, not an invoice.
Even business to business it is made clear that prices are net of vat.
RogerDodger said:
It is as simple and clear as this:
If a vat registered company quotes you, their quote must either say "net of vat", or , "plus vat" , or anything similar that makes it clear that vat will be added on. Quoting and just having a vat number on the quote footer is not good enough.
If you are quoted "£1500" and then get an invoice for £1800 then they are at fault for not making it clear the £1500 was net of vat . How were you to know if the invoice was net or gross? You would assume, as a consumer, gross.
If I quoted net and then charged vat, my customers would tell me to do one. That's deception.
My quotes show the full amount, with the vat element highlighted. When I quote casually by voice or email, it is £1500 plus vat
Thanks, thats what I was thinking, as a consumer there is no reason for you to assume there is no VAT quoted unless its written on the quote. If VAT appears on the Invoice then its tough luck for the trader as it was not part of the quote.If a vat registered company quotes you, their quote must either say "net of vat", or , "plus vat" , or anything similar that makes it clear that vat will be added on. Quoting and just having a vat number on the quote footer is not good enough.
If you are quoted "£1500" and then get an invoice for £1800 then they are at fault for not making it clear the £1500 was net of vat . How were you to know if the invoice was net or gross? You would assume, as a consumer, gross.
If I quoted net and then charged vat, my customers would tell me to do one. That's deception.
My quotes show the full amount, with the vat element highlighted. When I quote casually by voice or email, it is £1500 plus vat
For a consumer a quote must include vat, even "xxx+vat" is incorrect, you should be quoted the price you will pay.
Unless its someone you know and/or trust its an honest mistake, if you have a written quote with no mention of vat and they're trying to stiff you I'd tell em to do one.
Unless its someone you know and/or trust its an honest mistake, if you have a written quote with no mention of vat and they're trying to stiff you I'd tell em to do one.
Teddy Lop said:
For a consumer a quote must include vat, even "xxx+vat" is incorrect, you should be quoted the price you will pay.
The reality , however, with every garage, for example, is "that will cost you £1200 , plus the vat, mate"They tell you the net, plus the vat, as it sounds lower. But, they do tell you there is vat to add.
grumpy52 said:
Can small businesses only charge VAT if they are VAT registered . I know in the past some only worked to a turnover level below the VAT threshold. Has this all changed or have I got this wrong ?
They’re not charging VAT, they’re charging what they say they’re charging. If a non-VAT registered company gives you a quote of £10+VAT they’re charging you £12 and they pocket £12, what they’ve said the extra above the quoted price is is irrelevant, you’re just paying the bottom line figure. Plus there’s no reason for a non-VAT registered company to do this anyway. As a customer are you going to use a company that quotes you £10 or one that quotes you £10+VAT? Quoting +VAT prices for a non- VAT registered company is lose/lose for everyone.
This is quite simple, if your have a quote and vat is not mentioned then you pay the quoted price.its there fault if they have missed it off the quote. It’s fraud for a non vat registered company to charge vat. I used to be vat registered and had to have vat reg no on the quote and invoice. Now I’m not vat I can’t charge it.
The OH had this a year or so ago... phoned a garage for a quote for a service on her car. Told it'll be "price" - not "price + VAT", took car for servicing and then duly charged 20% more because they'd added VAT which they'd neglected to tell her was additional in the first place. Unfortunately she just paid it. I'd have kicked off.
paintman said:
Makro have the price without VAT on their shelf prices together with the VAT rate applicable. They are - in theory - a 'trade only' cash & carry & you have to provide proof that you are a business before they'll give you a card. You need to produce the card at their premises to get in & at the till.
Comes as a bit of a shock to some when they find that the bill is rather larger than they expected with the VAT on it! Not an issue for bona fide traders as we claim the VAT back anyway.
There happen to be bona fide traders who aren't VAT registered, and therefore cannot claim it back.Comes as a bit of a shock to some when they find that the bill is rather larger than they expected with the VAT on it! Not an issue for bona fide traders as we claim the VAT back anyway.
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