VAT cut for house rent, car lease and DFS

Calvinandhobbs

Hi all, first post, so apologies if this is repeated somewhere else (I did look!) I have 3 questions, I'd really appreciate some help please:

1. Three weeks ago I began leasing a car from my local Lexus garage on a PCH, obviously the monthly amount I pay includes VAT at 17.5%, does the dealer have to reflect the new lower rate for future payments (until 31st Dec 2009)?


2. I pay £915 pcm rental for my house through Countrywide Residential Lettings, will this include VAT, or do you not pay VAT on property rental? (It doesn't mention VAT in the contract)


3. I ordered some furniture to the value of £550 from DFS two nights ago, I did this over the phone on an 18 month no interest credit arrangement, I gave my details for direct debit, but made no payment or deposit, nor have I signed anything. I imagine I will be invoiced before the 1st Dec, however I will not receive delivery until around the 15th Dec and not make my first payment until 4 weeks after that.

I think the invoice will include VAT at 17.5%, can I demand a reduction? Obviously I could cancel and reorder, but I don't trust DFS to pass the saving on, they change their prices and range names so frequently that it would be easy for them to claim they had reflected the cut (the items I bought have already changed name)


Thank you for your help!

sundancer101

1. Yes, the VAT rate should be cut to 15% until the rate goes back up.
2. No, I believe there is no VAT on domestic property rental.
3. Not sure about this one - if the initial invoice/credit agreement was raised with VAT at 17.5%, I think any payments after monday would have to be changed to reflect the new rate.