builder adding VAT after work completed

sunshinetours

Alan_M wrote: »

This is difficult to call without sight of the original quote and how it was presented.

The fact the original quote declared the amount as a "Sub total" is an indication.

It is a legal requirement for advertised retail prices to include VAT or at least an inclusive price clearly visible in the case of trade wholesalers, but this only applies to retail sales, not quoted/estimated work.

Although it should be made clear in the interested of clarity.

Scan the document, remove anything that identifies you or the builder and you'll get a better answer to where you stand.

I agree the original document would be needed for definitive opinion, but the original quote said TOTAL not sub total. It was the "confirmation" i e final invoice presumably which then mentioned sub total according to OP.

I think the builder seems to have acted pretty poorly if this is all accurate

xMonsoonx

Alan_M wrote: »

The fact the original quote declared the amount as a "Sub total" is an indication.

The quote says total, the after works conformation says sub-total.

I also confirmed the quoted figure over the phone when i booked the work.

His company has been running for about 50 years and he is VAT registored.

kazwookie

I work in the construction industry.

All our quotes are ex vat, so it reads something like:- to carry out works.......... £(x) + vat.

In the small print on page 2 of our quotes again it says, all prices are ex of vat which will be charged at the current rate at time of invoice.

All our quotes / invoices/ letters are on headed paper which includes our address, phone, fax, web, vat no, registered in England no , and registered office address as well.

I 'believe' it is standard for all quotes in the construction industry to be nett, ie vat is added on afterwards.

(go into any decent builders merchants, and look at their pricing, it nearly always says £(x) + vat

sunshinetours

kazwookie wrote: »

I work in the construction industry.

All our quotes are ex vat, so it reads something like:- to carry out works.......... £(x) + vat.

In the small print on page 2 of our quotes again it says, all prices are ex of vat which will be charged at the current rate at time of invoice.

All our quotes / invoices/ letters are on headed paper which includes our address, phone, fax, web, vat no, registered in England no , and registered office address as well.

I 'believe' it is standard for all quotes in the construction industry to be nett, ie vat is added on afterwards.

(go into any decent builders merchants, and look at their pricing, it nearly always says £(x) + vat

Indeed, so there could be no doubt with yours - doesn't sound the same here per the OP though does it

Alan_M_2

Yup, so lets see a copy of the written estimate, up until then we're all making assumptions.

JasonLVC

kazwookie wrote: »

(go into any decent builders merchants, and look at their pricing, it nearly always says £(x) + vat

Builders merchants usually are geared up to sell to Trade (ie, Business to Business), whereas B&Q/Focus are retailers geared up towards the consumer (Business to consumer). The same goes for other wholesalers such as Makro/CostCo/Bookers - these are not retailers and are selling to other traders, although they will sell to consumers, hence why they show ex. VAT prices.

A builder quoting a price to a consumer, should be quoting a VAT inclusive price becuase the consumer cannot reclaim VAT and thus the true price of the contract should be revealed up front at the start, thus a VAT inclusive price is required.

Alan_M_2

JasonLVC wrote: »

A builder quoting a price to a consumer, should be quoting a VAT inclusive price becuase the consumer cannot reclaim VAT and thus the true price of the contract should be revealed up front at the start, thus a VAT inclusive price is required.

Should but not a legal requirement as unlike B&Q and other mentioned above the builder is not "advertising" or "displaying" his price and it falls through a tiny crack in the regulations, it is a written quotation.

It would be prudent that the situation is clearly displayed though.

I am almost entirely Business to Business but if I do provide a price I show:-

£100 + vat (£117.50 ) - everyone knows where they are.

We're still waiting to see a scan of the offending document for a final judgment.

Auntie-Dolly

Have you spoken to him about it? Perhaps it is a mistake.

keystone

JasonLVC wrote: »

If the original quote doesn't mention VAT, then VAT is deemed to be inclusive within the price.

100%.

I suppose it is possible that in the time he quoted and the time he completed the job that he has exceeded the VAT registration threshold and has been forced to register for VAT.

No thats the builders problem. If he only thinks he might go over the VAT threshold during the year then he must register for VAT. It hasn't just crept up on him.

If that is the case, then both parties should negotiate a fair and reasonable settlement (ie, go halves). I'd expect to see VAT number clearly shown on all the paperwork and if needs be, ask the builder when he became VAT registered in order to confirm if this is what has happened.

Your first paragraph still applies.

Personally, I'd argue that the original quote still stands. If VAT was expressly excluded then this should have been made clear on the quote (after all, the quote is the formation of the contract) and if the builder has had to register for VAT, then that's his problem.

Quite.

Cheers