Stop quoting me EXC VAT
Stop quoting me EXC VAT
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Discussion

Petrolsmasher

Original Poster:

2,452 posts

146 months

Tuesday 10th September 2019
quotequote all
Why do tradesmen/car garages and so on always give a price and then tell me to add VAT on top.

What general member of the public wont pay VAT, i get a quote, thinks its a good price then realise its exc VAT. Majority of customers are going to pay VAT so why quote the non vat price for the small selection of people who may be vat exempt?

Last Visit

3,688 posts

218 months

Tuesday 10th September 2019
quotequote all
I have to say this also annoys me with every quote I ever receive.

Welshbeef

49,633 posts

228 months

Tuesday 10th September 2019
quotequote all
Petrolsmasher said:
Why do tradesmen/car garages and so on always give a price and then tell me to add VAT on top.

What general member of the public wont pay VAT, i get a quote, thinks its a good price then realise its exc VAT. Majority of customers are going to pay VAT so why quote the non vat price for the small selection of people who may be vat exempt?
It opens the door to “is that for cash” question by the buyer.
Oddly countless people do pay for house improvements cash and no invoice - to save 20% BUT clearly they cannot offset these improvement costs against any capital gains tax which is at 28% so they are wanting an 8% loss if they sell.
Also no invoice means they personally are harming social services/ public services by lost VAT

227bhp

10,203 posts

158 months

Tuesday 10th September 2019
quotequote all
It's saying 'I'm charging you £100, the other £20 goes to HMRC, that's why it's £120'.

hyphen

26,262 posts

120 months

Tuesday 10th September 2019
quotequote all
Stop using VAT registered tradesman...

plasticpig

12,932 posts

255 months

Tuesday 10th September 2019
quotequote all
Its illegal to quote a consumer an Ex VAT price:

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


Welshbeef

49,633 posts

228 months

Tuesday 10th September 2019
quotequote all
plasticpig said:
Its illegal to quote a consumer an Ex VAT price:

http://www.legislation.gov.uk/uksi/2008/1277/regul...
This comes from when they speak - the actual email or paper quote contains the VAT.

It’s at that early point the door is possibly open to a for cash offer.

Pothole

34,367 posts

312 months

Tuesday 10th September 2019
quotequote all
Petrolsmasher said:
Why do tradesmen/car garages and so on always give a price and then tell me to add VAT on top.

What general member of the public wont pay VAT, i get a quote, thinks its a good price then realise its exc VAT. Majority of customers are going to pay VAT so why quote the non vat price for the small selection of people who may be vat exempt?
Why do you use "car garages"?





fridaypassion

11,457 posts

258 months

Wednesday 11th September 2019
quotequote all
Most small garages will have started out as none vat reg but had to go registered when their turnover hit the threshold. For most small businesses it's seen as a separate charge that might make them more expensive and they probably resent having to charge vat and so will quote the vat separately.

This is surely an argument to have with the government and not a garage. The none vat registered garages that only deal in cash are the ones that need sorting out.

RicksAlfas

14,529 posts

274 months

Wednesday 11th September 2019
quotequote all
Just remember to ask "Is that including VAT"?
wink

thebraketester

15,780 posts

168 months

Wednesday 11th September 2019
quotequote all
For certain things the vat varies so it could be 5% or 20%. Admittedly a rare occurrence but those situations would make sense to get quoted “price + vat”

Cotty

42,240 posts

314 months

Wednesday 11th September 2019
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If I am given a price for work and I pay that price, surely its up to the tradesman to pay the VAT out of what I have paid him.

Smollet

16,578 posts

220 months

Wednesday 11th September 2019
quotequote all
Last Visit said:
I have to say this also annoys me with every quote I ever receive.
Agreed. A similar example would be going to a petrol station and seeing a sign “unleaded 25p per litre” and then getting a nasty shock when the checkout showed it as £1.25.

Frimley111R

19,235 posts

264 months

Wednesday 11th September 2019
quotequote all
I've seen/See it from both angles.

It used to annoy me mostly because you'd be quoted a price and they wouldn't say it excludes VAT and when you came to pay the cost would be XX% higher than you expected. Worst example was after a £4000 job to fit a supercharger on my Lotus and they added VAT at the end. £4000 was my absolute max budget. If a supplier of products/services says a price is £200 plus VAT then that's fine and I know what it'll be.

Having now run/running my own businesses, going from not charging VAT to charging it we do quote, for example £495 plus VAT. The reason for doing so is to effectively say to a customer 'We only charge £495, the VAT is nothing to do with us'. We never quote a price leaving out VAT though.

plasticpig

12,932 posts

255 months

Wednesday 11th September 2019
quotequote all
Frimley111R said:
I've seen/See it from both angles.

It used to annoy me mostly because you'd be quoted a price and they wouldn't say it excludes VAT and when you came to pay the cost would be XX% higher than you expected. Worst example was after a £4000 job to fit a supercharger on my Lotus and they added VAT at the end. £4000 was my absolute max budget. If a supplier of products/services says a price is £200 plus VAT then that's fine and I know what it'll be.
Something similar happened to me. I refused to pay the VAT and told the garage I would happily go to court over it. They did a written quote that did not mention VAT.


P-Jay

11,405 posts

221 months

Wednesday 11th September 2019
quotequote all
As a consumer I've not experienced that for years, I'd be pretty annoyed too.

Everything we quote / buy in work is Exc VAT, but we only work B2B and it's assumed and of course all clearly displayed on quotes / invoices etc.

red_slr

20,747 posts

219 months

Wednesday 11th September 2019
quotequote all
B2B we are ex vat, all quotes are "subject to VAT at the current rate".

For public its always inc VAT and we point this out as many don't add the VAT on till the end.

When I sold my house the estate agent tried to have me over on the VAT for their fee. I refused as they had made zero mention of +VAT in any of their comms. It was completion day and 12 oclock came and I just told the solicitor to withhold and in the end they had to accept and issue a new invoice.


JuniorD

9,013 posts

253 months

Wednesday 11th September 2019
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The VAT rate could change between the quote and the work, so quoting "EXC VAT" allows for this.

Eric Mc

125,675 posts

295 months

Wednesday 11th September 2019
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It's really not that hard to work out the VAT that needs to be added.

Exige77

6,523 posts

221 months

Wednesday 11th September 2019
quotequote all
JuniorD said:
The VAT rate could change between the quote and the work, so quoting "EXC VAT" allows for this.
So how often does the VAT rate change ?

Daily ? Weekly ? Monthly smile