Vat not mentioned in quote

troutman

Was quoted a price at garage for some repairs on my car. Was informed a price of 650 which i agreed on. Got a call today and he informed me car was ready, I checked the price and he informed me a bit more effort was required so it's now 730... paused and said plus the vat on top of course.
Now i specifically made note of this price before, never was another 20% on top charge mentioned, ive looked online and it seems business to business is assumed less vat, but business to customer price should include vat. He had noted the quote in his diary as 650 and mine on a business card, nothing formal.

Of course i refuse to pay this extra and he's insisting i do pay, where do i stand?

Thanks.

pendulum

"... so it's now 730... paused and said plus the vat on top of course."

VAT on top of the whole sum, or just the extra £80? The £650 should certainly have included VAT. If he's just trying to claim £80 + VAT for the additional work, then whilst it's arguable whether you have to pay for the extra work or not, it's fine from a VAT perspective.

If he used the word quote, then he shouldn't technically have done any more work without clearing it with you first.

If he said "about £650", or gave you an estimate, then you are out of luck.

What work was done?

newDude

troutman wrote: »

Was quoted a price at garage for some repairs on my car. Was informed a price of 650 which i agreed on. Got a call today and he informed me car was ready, I checked the price and he informed me a bit more effort was required so it's now 730... paused and said plus the vat on top of course.
Now i specifically made note of this price before, never was another 20% on top charge mentioned, ive looked online and it seems business to business is assumed less vat, but business to customer price should include vat. He had noted the quote in his diary as 650 and mine on a business card, nothing formal.

Of course i refuse to pay this extra and he's insisting i do pay, where do i stand?

Thanks.

What sort of repairs were they? If i don't need a guarantee on the repairs, i always pay CASH and never get charged VAT.

troutman

He originaly informed me 650. And i said ok 650 deal. Never did he say ohh plus the vat on top of that. This is to repair some dents and bodywork on my car.

I accept it turned out a little bit more im not knocking that, i can swallow the extra 80 fair enough, but now another 20% extra i never accounted for.

troutman

pendulum wrote: »

"... so it's now 730... paused and said plus the vat on top of course."

VAT on top of the whole sum, or just the extra £80? The £650 should certainly have included VAT. If he's just trying to claim £80 + VAT for the additional work, then whilst it's arguable whether you have to pay for the extra work or not, it's fine from a VAT perspective.

If he used the word quote, then he shouldn't technically have done any more work without clearing it with you first.

If he said "about £650", or gave you an estimate, then you are out of luck.

What work was done?

So a customer estimate doesn't include vat??? Surely not? Is there some written rule on this? I dont understand why i should be paying their vat, should be factored in the price unless im trade?

Equaliser123

newDude wrote: »

What sort of repairs were they? If i don't need a guarantee on the repairs, i always pay CASH and never get charged VAT.

Why wouldn't you get any guarantee for paying cash?

troutman

http://www.bis.gov.uk/files/file8127.pdf

Valued Added Tax
(i) Price indications to consumers
[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]2.2.7 All price indications you give to private consumers, by whatever means, should include VAT. [/FONT][/FONT][FONT=Times New Roman,Times New Roman]
[/FONT](ii) Price indications to business customers
[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]2.2.8 Prices may be indicated exclusive of VAT at an outlet or through advertisements from which most of your business is with business customers. If you also conduct business at that outlet or through these advertisements with consumers, however, you should make clear that the prices exclude VAT and you should: [/FONT][/FONT][FONT=Times New Roman,Times New Roman]
[FONT=Times New Roman,Times New Roman](a) display VAT inclusive prices with equal prominence, or; [/FONT]

[FONT=Times New Roman,Times New Roman](b) display prominent statements that the quoted prices exclude VAT and state the appropriate rate. If should be noted that VAT inclusive prices for all goods offered by traders to consumers are required by the Price Marking Order 2004[/FONT]

[/FONT][FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]6 [/FONT][/FONT][FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman](further information can be obtained from your local Trading Standards Service). [/FONT][/FONT]

(iii) Professional fees

[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]2.2.9 Where you indicate a price (including an estimate) for a professional fee, make clear what it covers. The price should generally include VAT. In cases where the fee is based on an as-yet-unknown sum of money (for example, the sale price of a house), either: [/FONT][/FONT][FONT=Times New Roman,Times New Roman]
[FONT=Times New Roman,Times New Roman](a) quote a fee which includes VAT; or [/FONT][/FONT]

[FONT=Times New Roman,Times New Roman]

[FONT=Times New Roman,Times New Roman](b) make it clear that in addition to your fee the consumer would have to pay VAT at the current rate (e.g. "fee of 1.5% of purchase price, plus VAT at 17.5%"). [/FONT]

[/FONT]

mo786uk

As above, all prices should include VAT

It is very commonfor garages to quote ex VAT prices - mien was usually says £100 plus VAT so it is then upto me to work out the extra - its not ideal but as long as they make it clear it is probably acceptable

just quoting non VAT prices without any indication its non VAT is not acceptable IMO.