Discussion
When quoting for a b2c construction service, do you put the total as plus vat or inc vat on the quote?
For example:
a) £2000 + VAT
or
b) £2400 inc VAT
Personally I think it is better to show the total with the VAT breakdown to be open and avoid confusion later down the line, but my colleague thinks it makes us look more expensive initially. Any thoughts welcome!
For example:
a) £2000 + VAT
or
b) £2400 inc VAT
Personally I think it is better to show the total with the VAT breakdown to be open and avoid confusion later down the line, but my colleague thinks it makes us look more expensive initially. Any thoughts welcome!
The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 states that the quoted price must show "the total price of the goods or services inclusive of taxes".
FWIW I am building an IT system for a construction business and their quotes all show amounts specified as exclusive of VAT even if the customer is a consumer not a business and I think this seems to be a common practice in the construction industry.
FWIW I am building an IT system for a construction business and their quotes all show amounts specified as exclusive of VAT even if the customer is a consumer not a business and I think this seems to be a common practice in the construction industry.
C722 said:
Interesting, thanks for the replies.
Currently it shows on the quotes as follows:
£3,210.50
VAT @ 20% £642.10
Total: £3,852.60
Whereas, some of our competitors would just state:
£3.210.50 + VAT
To be absolutely strictly complying with the law in the cases where the customer is a consumer, then the first version is the correct one.Currently it shows on the quotes as follows:
£3,210.50
VAT @ 20% £642.10
Total: £3,852.60
Whereas, some of our competitors would just state:
£3.210.50 + VAT
C722 said:
Interesting, thanks for the replies.
Currently it shows on the quotes as follows:
£3,210.50
VAT @ 20% £642.10
Total: £3,852.60
Whereas, some of our competitors would just state:
£3.210.50 + VAT
Speaking entirely from the point ion view of being a consumer, I would hope for the all inclusive price.Currently it shows on the quotes as follows:
£3,210.50
VAT @ 20% £642.10
Total: £3,852.60
Whereas, some of our competitors would just state:
£3.210.50 + VAT
If I receive a quote as a price plus VAT, that's fine (acknowledging the legalities) especially if I'm dealing with an entity that normally deals b2b. I only have to multiply by 1.2 after all.
If I received a quote like that from an entity that deals mostly b2c, it might make me a little wary of them - if they're leaving out the VAT to make themselves look cheaper, what else are they leaving out, how many extras am I going to need?
Or is it an invitation to the customer to request a "discount for cash"?
48k said:
To be absolutely strictly complying with the law in the cases where the customer is a consumer, then the first version is the correct one.
Always quote a VAT inclusive price to a consumer. I ended up in court over this a few years back. As a consumer I was quoted a price for some work which didn't include VAT. From the quotation I assumed the company quoting wasn't VAT registered as VAT wasn't mentioned on the quote. The company in question took me to the small claims court for the amount of VAT and lost.
As a consumer I would not take up a quote that didn't include VAT (i.e. I thought the supplier was trying to hide the true figure) unless there was a compelling reason to go for that company over another.
I have chosen between businesses on this basis before even if paying more (garages spring to mind although they seem to have improved in recent years). In fact, to be fair business in general seem to have complied better - I am just getting a number of quotes from builders and they are all quoting with full information (ie net, VAT & gross)
I have chosen between businesses on this basis before even if paying more (garages spring to mind although they seem to have improved in recent years). In fact, to be fair business in general seem to have complied better - I am just getting a number of quotes from builders and they are all quoting with full information (ie net, VAT & gross)
The Moose said:
For construction, is there a need to quote ex VAT due to the VAT relief that is available for some people?
I would put ex VAT, VAT inc VAT prices - all 3.
Me too.I would put ex VAT, VAT inc VAT prices - all 3.
If you're VAT registered, VAT is (effectively) irrelevant. The lower number counts.
If you're Johnny Consumer, a price that doesn't include VAT is false. The higher number counts.
Nothing more annoying than the garage who says 'That will be £364.82 (pause). Plus the VAT'.
Gassing Station | Business | Top of Page | What's New | My Stuff


