Do you pay VAT on a conservatory?

samtheman1k

Hello all!

I had a quote for a replacement conservatory before xmas, and just followed it up today where the nice salesman told me that they will hold the price at the 17.5% VAT. Great I thought!

But then I remembered, when I got some windows installed last year, the [different] company said that there is no VAT to pay (wasn't a cash job!).

So I'm now a bit confused. Would you pay VAT on a conservatory? Does it depend on how the company is registered for tax? The previous person was just a self employed window fitter, the new company is a installation company with a shop front etc.

Thanks!

[Deleted User]

Yep, think you're right about it being a difference in how they are registered. Chances are the self employed window fitter didn't make enough sales to be VAT registered so he didn't have to charge you VAT. The conservatory people sound like a larger operation so will be registered and will have to charge VAT.

JasonLVC

As per Fluzz's post.

An alternative could be that many large VAT registered window firms offer a 'VAT Free' deal (indeed, many firms offer to 'pay the VAT for you') but all this means is that they are discounting the price by 17.5% (or 20% now).....they'll still charge VAT at the proper VAT rate. Just see it as another way of getting 20% off the selling price.

samtheman1k

It's not a big company, but does have a single shop, and aren't doing any of these 'pay no VAT but we'll just overcharge by 17.5% in the first place so you think you're getting a good deal' things. Out of interest, how much sales do you need to turnover to be registered for VAT?

EDIT: Found it, £70k. Interesting, as some one-man-band tradesmen are unlikely to be VAT registered, but some will undoubtly charge VAT. Have to watch out for that one!!!!

zygurat789

samtheman1k wrote: »

It's not a big company, but does have a single shop, and aren't doing any of these 'pay no VAT but we'll just overcharge by 17.5% in the first place so you think you're getting a good deal' things. Out of interest, how much sales do you need to turnover to be registered for VAT?

EDIT: Found it, £70k. Interesting, as some one-man-band tradesmen are unlikely to be VAT registered, but some will undoubtly charge VAT. Have to watch out for that one!!!!

Neither are the cowboys and fly-by-nights

secretservice

Some advice, get the companies name, do a free web check on companies house website (http://wck2.companieshouse.gov.uk/786a51492eff6a7646ca53a243afa300/wcframe?name=accessCompanyInfo), pay £1 get a copy of their annual accounts and see if your getting ripped off.

dtaylor84

In what sense would he be getting ripped off?

They set the price, he either agrees to it or doesn't.

If the company is not VAT registered they will be unable to reclaim any VAT they pay to their suppliers, so it's not like they'd be able to be 20% cheaper than a VAT registered firm.

To check if you're being ripped off, look at the prices other companies are charging!