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Quick VAT question

A wholesaler wants to charge me VAT on an item I bought in August 2009.

I paid in full on order - error was only highlighted to me by the company on Friday (6 months after order) as it was when they discovered it.

They reckon I have to pay as it's a legal requirement. I can't believe they're suddenly adding this amount to an item 6 months after purchase. Seems it was a website error on their part.

I don't have a credit account with them and have made orders since the first in 2009.

Goods were dispatched upon order - their T+C state they will hold goods until full payment is received.

I don't pay VAT as under threshold.

Any advice - it's only £20ish, but the principle is ridiculous.
Who made hogs and dogs and frogs?

Comments

  • JasonLVC
    JasonLVC Posts: 16,762 Forumite
    Part of the Furniture Combo Breaker
    The responsibility (and liability) for VAT is the suppliers. It sounds like in August 2009, for whatever reason they forgot to charge you VAT on a wholesale supply.

    If you were VAT registered yourself and could reclaim the VAT, then there is no reason why the supplier cannot charge you VAT now and you pay it/reclaim it.

    However, you state you are NOT registered for VAT and therefore you would be unable to reclaim this VAT if charged to you now. The bottom line is that the supplier cannot force you to pay this VAT now at this stage.

    It was their error and whilst they ARE legally obliged to account for VAT on this sale, the liability is theirs, not yours.

    If you want to continue a relationship with them, then maybe you should pay (ie, if you don't pay they'll likely refuse you further trade) and if it is a small value probably not worth losing a good supplier over.
    Anger ruins joy, it steals the goodness of my mind. Forces me to say terrible things. Overcoming anger brings peace of mind, a mind without regret. If I overcome anger, I will be delightful and loved by everyone.
  • ukbill69
    ukbill69 Posts: 2,790 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    Tell them to take you to court, and anyone that isnt stupid would let it go as they know they will loose. Sounds like that company is is having money troubles. As VAT returns are paid every 3 months, so 6 months ago, then this would have already been submitted.
    Kind Regards
    Bill
  • martindow
    martindow Posts: 10,743 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You say that have made repeat orders with these people. If you want to continue using them you will need to pay up. I doubt they will supply any more until this is settled.
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