Vat

LOVELLSTEV

I PLACED AN ORDER FOR FURNITURE IN SEPT THIS YEAR AND PAID A DEPOSIT. I WAS TOLD THE ORDER WOULD TAKE 12 WEEKS FOR DELIVERY AND UPON DELIVERY I NEED TO PAY THE BALNCE.!
THE ORDER ARRIVED EARLY (NOVEMBER), HOWEVER THE STORE ARE NOW REQUESTING THE FINAL PAYMENT !

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WOULD I BE ENTITLED TO A REDUCTION OF 2.5 % OF THE OVERALL PAYMENT AS THE VAT RATE FROM DECEMBER HAS CHANGED.
PLEASE REPLY A.S.A.P.:cool:

Moon_Boi

LOVELLSTEV wrote: »

I PLACED AN ORDER FOR FURNITURE IN SEPT THIS YEAR AND PAID A DEPOSIT. I WAS TOLD THE ORDER WOULD TAKE 12 WEEKS FOR DELIVERY AND UPON DELIVERY I NEED TO PAY THE BALNCE.!
THE ORDER ARRIVED EARLY (NOVEMBER), HOWEVER THE STORE ARE NOW REQUESTING THE FINAL PAYMENT !

---

WOULD I BE ENTITLED TO A REDUCTION OF 2.5 % OF THE OVERALL PAYMENT AS THE VAT RATE FROM DECEMBER HAS CHANGED.
PLEASE REPLY A.S.A.P.:cool:

If the order arrived in November, you will not get the lower rate VAT (15%). The invoice will be dated before the VAT rate change from 1st Dec.

phildew

Does it also depend whether the retailer has chosen to pass on the cut in VAT. Most show their prices including VAT and the customer is not aware of the amount that is VAT.

dzug1

phildew wrote: »

Does it also depend whether the retailer has chosen to pass on the cut in VAT. Most show their prices including VAT and the customer is not aware of the amount that is VAT.

No it doesn't. The goods were delivered and (should have been) paid for before the rate change, so the old rate applies.

JasonLVC

The basic tax point for a supply of goods is the earliest of :-

Payment received by supplier

Goods recevied by customer

In the OP's case, goods were delivered in November 2008 and so VAT is due to the government in November 2008 at the standard rate at that time. Which was 17.5%.

If the invoice was raised in November then 17.5% would apply, if they have not raised an invoice yet, the goods were still supplied in November

If the cost of the goods were £1,000 incl VAT, the differnce between the old and new VAT rates will be around £10.00 so probably not as big a savings as you may think and so may not be worth the argument with the supplier.