VAT increase query

crazy_guy

Hi

My girlfriend and I have been arranging our wedding for April 2011. We've recieved invoices from numerous suppliers which have confirmed the price, eg. £500 PLUS VAT. We've paid a desposit to secure our booking.

When paying the final amount a few weeks prior to the wedding, will we be obliged to pay the higher rate of VAT or will the 17.5% rate still apply as the booking was made this year.

I've researched this but there is very little guidance from the consumer point of view.

MrRedundant

The higher rate as every piece of legisliation states. I am surprised you can't find the guidance.

le_loup

Unless you pay for everything now, the new rate will apply.

jimmo

Try this.
http://www.moneysavingexpert.com/news/shopping/2010/12/beat-the-january-vat-rise

derrick

From jimmos link;-

What if you pay the deposit now and the rest in 2011? The deposit is charged at 17.5%, the rest of the balance depends on when the VAT invoice is raised. So ask the retailer to raise it before 2010 ends.




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forever_changes

In December I verbally accepted a verbal offer to install a fire at the old VAT rate but the work ended up not being done til after Jan 4th because of bad weather. They have charged me the 20% vat, is that right?

chrismac1

This is correct. The tax point is the earlier of the payment date or completion date, in this case both are after 4 Jan so 20% VAT applies. However, if the verbal price was "£100 plus VAT" then they are OK to charge you £120. If the verbal price was "£117.50 including VAT" then £117.50 is what they should bill you, and the VAT is now £19.58 not £20.00.