Incorrect invoice issue

WebMonkey

Hi,

Recently had some work carried out and our builder gave us a quote based on 20% VAT

When work was completed he sent final invoice with VAT at 5% as part of the work was renovation not new. We sent an email querying if this was right but got no reply so paid up.

As we now had more available funds we got the builder to do some other work which was invoiced at 20% VAT and we paid that.

Now 6 weeks after first invoice was sent out the builder has notified us that he made an error on first bill and it should of been 20% VAT and has sent us another bill for the 15% deficit.

Are we liable to pay this?

Thanks for any advice

bris

Yes your original quote was based on 20% so all that has happened is a mistake in the calculation, you are still contracted to the 20% VAT.

Mistakes happen but what is key is always the original contract.

bod1467

bris wrote: »

Mistakes happen but what is key is always the original contract.

Is it? As far as I recall, in contract law the invoice (dated later than the contract) presents the supplier's final demand.

I am happy to be proven wrong.

SuperHan

It's actually the suppliers responsibility to ensure that VAT is collected properly. HMRC will assume that the final invoice you paid included 20% VAT and will hold the supplier liable for that amount.

However, if it wasn't the amount you were expecting to pay, I suppose he could argue that it wasn't a final invoice and his new invoice is the final...