VAT dodge? Thoughts please...

[R11ysf]

I recently bought something on line at a price of £7.62. This is obviously inc VAT as it was a retail business selling to a consumer. I then received an invoice saying it was £9.14. I contacted the seller and after several confusing emails back and forth they assured me that the price was £7.62 and that was what I would be charged.

Sure enough I was charged £7.62 but when the item was delivered it included an invoice which once again had the £9.14 figure on it.

I was just wondering, what scam could the company be trying to pull? Could they be claiming more VAT back than allowed? Surely that would mean it would have to go with a higher revenue and so corporate tax bill too or money they hadn't received??

Any thoughts or suggestions on what they are trying to pull?

[IJB1959]

R11ysf said:

I recently bought something on line at a price of £7.62. This is obviously inc VAT as it was a retail business selling to a consumer. I then received an invoice saying it was £9.14. I contacted the seller and after several confusing emails back and forth they assured me that the price was £7.62 and that was what I would be charged.

Sure enough I was charged £7.62 but when the item was delivered it included an invoice which once again had the £9.14 figure on it.

I was just wondering, what scam could the company be trying to pull? Could they be claiming more VAT back than allowed? Surely that would mean it would have to go with a higher revenue and so corporate tax bill too or money they hadn't received??

Any thoughts or suggestions on what they are trying to pull?

Did the invoice show:

Net amount £7.62
VAT £1.52
Total £9.14

Also and importantly, did the invoice have a VAT registration number showing on the invoice??

[R11ysf]

This was the online receipt.

Qty Subtotal
1 £7.62
Subtotal £7.62
Shipping & Handling £0.00
Grand Total (Excl.VAT) £7.62
VAT £1.52
Grand Total (Incl.VAT) £9.14

I've not got the physical one to hand so not sure about a VAT number. This would artificially inflate their revenue and also profit as well as VAT claim so I'm at a loss as to why they'd do it? Unless they run two sets of invoices??

[IJB1959]

R11ysf said:

This was the online receipt.

Qty Subtotal
1 £7.62
Subtotal £7.62
Shipping & Handling £0.00
Grand Total (Excl.VAT) £7.62
VAT £1.52
Grand Total (Incl.VAT) £9.14

I've not got the physical one to hand so not sure about a VAT number. This would artificially inflate their revenue and also profit as well as VAT claim so I'm at a loss as to why they'd do it? Unless they run two sets of invoices??

If they are showing VAT I don't see their advantage, and if the invoice is 'genuine' then they loose £1.52 off their profit margin.

[Sheepshanks]

R11ysf said:

Could they be claiming more VAT back than allowed?

Firms don't claim the VAT back on sales.

Indeed I don't see a scam here, more a cock up. As it stands they'll have to hand over the VAT stated to the tax man.

[IJB1959]

Sheepshanks said:

Firms don't claim the VAT back on sales.

Indeed I don't see a scam here, more a cock up. As it stands they'll have to hand over the VAT stated to the tax man.

Correct

[R11ysf]

Fair enough, just seems very odd. The online and the physical receipt all showed a higher price than the one charged to my card so I just couldn't figure out how that would be good for them. If it is a cock up then it's one they should change pretty damn quick!

[IJB1959]

R11ysf said:

Fair enough, just seems very odd. The online and the physical receipt all showed a higher price than the one charged to my card so I just couldn't figure out how that would be good for them. If it is a cock up then it's one they should change pretty damn quick!

Agreed, but you saved £1.52 so a result for you!

[cuprabob]

Maybe they accidentally thought you were a business customer or someone has signed you up as a business to meet their targets

[Mandat]

It might be that they are not VAT registered, and therefore don't charge VAT but their invoicing system has not been set up properly and which shows the VAT element incorrectly included.

[SantaBarbara]

R11ysf said:

I recently bought something on line at a price of £7.62. This is obviously inc VAT as it was a retail business selling to a consumer. I then received an invoice saying it was £9.14. I contacted the seller and after several confusing emails back and forth they assured me that the price was £7.62 and that was what I would be charged.

Sure enough I was charged £7.62 but when the item was delivered it included an invoice which once again had the £9.14 figure on it.

I was just wondering, what scam could the company be trying to pull? Could they be claiming more VAT back than allowed? Surely that would mean it would have to go with a higher revenue and so corporate tax bill too or money they hadn't received??

Any thoughts or suggestions on what they are trying to pull?

What was th item please?

[3200gt]

Are they a UK company and would that make any difference if they weren't? Trying to figure an angle were they get a benefit.

[IJB1959]

cuprabob said:

Maybe they accidentally thought you were a business customer or someone has signed you up as a business to meet their targets

They still would have to charge the VAT as shown though either way, and as a business you would just claim it back. If it was a business discount and not a cock up as the other poster mentioned, they would have shown less 20% in the discount field.

[cuprabob]

IJB1959 said:

cuprabob said:

Maybe they accidentally thought you were a business customer or someone has signed you up as a business to meet their targets

They still would have to charge the VAT as shown though either way, and as a business you would just claim it back. If it was a business discount and not a cock up as the other poster mentioned, they would have shown less 20% in the discount field.

Fair point.

Just to be a little pedantic, a 20% discount on the gross value would be slightly more than the actual VAT value as 20% VAT is based on thr net value.

[IJB1959]

cuprabob said:

Fair point.

Just to be a little pedantic, a 20% discount on the gross value would be slightly more than the actual VAT value as 20% VAT is based on thr net value.

Yes it would, but roughly speaking.

[surveyor]

3200gt said:

Are they a UK company and would that make any difference if they weren't? Trying to figure an angle were they get a benefit.

I'm wondering about this. I know services... not products....

Actually I still don't see it.

[cuprabob]

IJB1959 said:

cuprabob said:

Fair point.

Just to be a little pedantic, a 20% discount on the gross value would be slightly more than the actual VAT value as 20% VAT is based on thr net value.

Yes it would, but roughly speaking.

Just one of my pet hates

[IJB1959]

cuprabob said:

Just one of my pet hates

Ha ha...we all have them. On £7.52 it's just pennies, but it were a car then stating accurately would obviously be more relevent (for me anyway).

[xjay1337]

School will be back soon

Nothing dodgy IMO.

[R11ysf]

It was listed on Amazon as £7.52 which was 1p cheaper than the next best price so no saving or anything, that was the price they meant to list. It was a UK company and a UK product.