VAT Question...

ITtim

Appologies if i should have posted this elsewhere. Not sure what it comes under but i need a bit of advice.

I'm getting married next year, last year we booked our venue.

We were give a price inclusive of vat for the venue and we signed the contract.

Since then the VAT rate has decreased and I thought this would mean the overall figure would become less.

I quried this with the venue and they have told me that we had agreed a price and that would remain the case. So essentially they will now get more money from us.

Can they do this? seems a little unfair to me (but then maybe I saw the pound signs flashing!!)

I'd be interested to know if this is acceptable practise.

Mathew

Not sure regarding that law etc, but I'm sure others will post.
Does seem unfair mind. Could you find you what they charge for a similar day? ie.. a week after?
Not suggested that you change the dates just get some ammo to haggle with

Ballymackeonan

You don't say when next year - VAT goes back up to 17½% on 1 January 2010 (the bit that got less publicity in Gordon Brown's announcement!)

ITtim

Ballymackeonan wrote: »

You don't say when next year - VAT goes back up to 17½% on 1 January 2010 (the bit that got less publicity in Gordon Brown's announcement!)

ah didn't know that. well if thats the case then our wedding is in May so it probably makes no difference.

suprised Gordon kept that bit quiet!

Meepster

The sad thing is, companies aren't legally obliged to pass on the VAT saving, they are just encouraged to. I know it's not the answer you were looking for, but that's the legal stance on this...

moonrakerz

Unless you are personally registered for VAT, the amount of money added to your bill is really irrelevant, you pay the asking price. It is the retailer (assuming he is VAT registered) who has to account for and pay the VAT, not you.

Mark_Hewitt

You would have had to have received an invoice with the purchase price and VAT portion broken down individually. However if they've just given you a price they are free to charge you that price if they wish, the proportion of tax vs what they get doesn't matter. However I'll bet they will put the price up if the VAT had gone up!

And it was very very very widely reported that the VAT rate would go back up to 17.5% in 2010, and I'll bet a lot of prices which weren't reduced during the cut will be increased when it's raised!