VAT latterly added to invoice but not on quote

sophiewophie

I recently had a new boiler fitted, the quote for the work was emailed to me as a total price and description for the work. I have now received the invoice which totals the quote and adds VAT. :mad:

I was unaware the quote did not include VAT, I was unaware whether they were VAT registered or not. I have budgeted for their original quote, and infact they would have been less competitive had I known about the VAT to be added and I would not have employed them. I have queried this, and all I have recieved back is an apology for them not telling me they were VAT registered. I don't care they are VAT registered or not, I care that the quote was not transparent.

Does anyone know where I stand on paying the VAT?

Many thanks

Sophie

david39

Two things spring to mind :

1) Was this a quotation or an estimate - If it is a quote then the price is fixed, if it is described as an estimate then the price can be varied after completion and the supplier can use this as a bargaining point.

2) Did the supplier provide Terms & Conditions either on the back of the quote or seperately saying "Subject to T&Cs, available on request." If there are T&Cs and they say that quotations provided are subject to the addition of VAT, then the supplier is probably in the right.

If the supplier more usually works for commercial companies than private individuals, then he commonly would quote "exc. VAT" but should have covered the point either in the quotation or in the T&Cs. Most commercial companies, when they receive quotes, assume they do not include VAT as it is immaterial to them because they claim the VAT back.

sophiewophie

Firstly, thanks for responding.

They provided a quote not an estimate, so that is good. They didn't provide T&C's, and my bad for not asking I suppose, I have used them before for small jobs and paid cash without an invoice. There is no mention of VAT on any correspondence with exception of the invoice, and they haven't provided a VAT number which I know is not on, but assuming they supply this, do I have a case to not pay it? I can't afford it and am very annoyed it wasn't clear.

I know they work for businesses like letting agents, but I would assume the majority of their work is for individuals like myself, and I am clearly not VAT registered and even if I were my house is a home not a business and you would assume they would spell it out.

I don't intend to use them again unless the new boiler breaks - fingers crossed it won't any time soon!

Hintza

I have found these things are always plus VAT and would assume as much unless told otherwise I'm afraid.

neilmcl

sophiewophie wrote: »

Firstly, thanks for responding.

They provided a quote not an estimate, so that is good. They didn't provide T&C's, and my bad for not asking I suppose, I have used them before for small jobs and paid cash without an invoice. There is no mention of VAT on any correspondence with exception of the invoice, and they haven't provided a VAT number which I know is not on, but assuming they supply this, do I have a case to not pay it? I can't afford it and am very annoyed it wasn't clear.

I know they work for businesses like letting agents, but I would assume the majority of their work is for individuals like myself, and I am clearly not VAT registered and even if I were my house is a home not a business and you would assume they would spell it out.

I don't intend to use them again unless the new boiler breaks - fingers crossed it won't any time soon!

Not only not on but this is illegal. They must provide their VAT reg. on any VAT invoice. Did the quote say anything about VAT, ie, incl VAT or excl VAT?

david39

They seem to be very naive or are scamming you for the VAT.

Are they actually VAT registered? The fact that they have supplied you with an invoice with no VAT number on it must be questionable. All VAT registered businesses have to put their VAT No on invoices.

Quote from Government Web Site
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/ContactOrDealWithHMRC/DG_10010579

"If a bill shows a separate amount for VAT, it must also show the nine-digit VAT registration number of the business. To check whether a VAT registration number is valid you can phone the HMRC National Advice Service on 0845 010 9000, open Monday to Friday from 8.00 am to 8.00 pm."

Tell the business that you will not pay until they provide you with a proper invoice that shows their VAT No. Don't just ask for their No., get it on a fresh proper invoice and then check it is theirs, and not one they have copied from someone else by ringing the above Advice Service Line.

If you can show that they are not VAT registered then they should be reported for fraud. You will need their (alleged) VAT No. printed on an invoice produced by them to ensure there is a cast-iron case.

My bet is they are not registered, otherwise their invoices would show their VAT No. because all their commercial customers would be ringing them up and complaining as they would be unable to claim their VAT back.

If they are registered, then you could show their first invoice to Trading Standards or Customs & Excise, as it clearly contravening the rules and should be investigated.

Equaliser123

If the quote was silent on whether VAT was included or not, then - as a private individual who is obliged to pay VAT - it will be deemed to be included within the price.

Just as in Tesco, you wouldn't expect them to add 17.5% to the price at check-out.

Optimist

If they have quoted you a certain price with no mention of VAT as a private individual then you are entitled to assume that is the price you will pay.

If they are not VAT registered and trying to add VAT on as a extra then the VAT man will not be best pleased.

david39

If they supply you with a VAT No. you can check it directly on-line at:
http://ec.europa.eu/taxation_customs/vies/vieshome.do?selectedLanguage=EN
where it will give you the name and address of the person/company who are registered with that number.