Charged 17.5% VAT in Chinese restaurant!

FatAndy

HMRC will easily spot if there's a problem. When you complete a VAT return you have to show total net sales and total output tax (ie VAT on sales). If your sales are all or nearly all vatable then the figure in the output tax box should be more or less equal to total net sales x 15%.

kirstyjemima

Hi, I'm really confused with some VAT that I have been charegd and was just hoping someone could tell me if i'd been wrongly charged..

I've just moved out of a rented property and received a recipt for deductions from my deopsit. One of the charges was for an inventory for which they have included a price list from the company.

It says for a four bedroom property (which mine was) that an inventory would be £100. It then says at the bottom 'Prices are subject to 17.5% VAT' so the total that I have been deducted is £117.50.

Can someone tell me if this is allowed or should I have been charged £115.
I know its not a massive amount of money, i would just like to know if they are allowed to do this.

MarkyMarkD

No, that's wrong. If they state a price before VAT then they should add the correct amount of VAT.

The price list was presumably produced when VAT was 17.5% so that rate was correctly stated at the time. But given that the agency is VAT registered, they will only pay £15 of VAT over to HMRC so they should charge you the correct VAT-inclusive amount.