VAT added to catering costs shortly before wedding

Questions855

We're having our wedding coming up soon and have been organizing catering with a supplier that we thought we could trust.

Their original quote, coming to about 5,000 didn't have any line items for VAT or any breakdown but included the line "All catering costs are subject to vat." under the price.

When I've received quotes in the past they would calculate the VAT and also apply the relevant rates, since not everything is 20%, so I had read this to mean VAT is included. With two weeks to go to the event we received the final invoice and this one asks for 1,000 more, this time having a line item for VAT (though not specifying the rate explicitly).

We feel mislead since it seems they were keeping this off of their invoices (including those for part payment we've met) until we were too far along. Is there anything we can do? We obviously don't want to start a huge fight now and mess up the wedding...

pappa_golf

is cold food vatable?

Questions855

just read up on it and sounds like 20% applies for catering. I'm more concerned about how they declared things.

pappa_golf

dunno , not my forte , however I seem to recall vat being added to hot food , but not cold , vat is possibly chargeable on a service , what is the breakdown of items

unholyangel

No they can't change the price after its been agreed - even if its to add on VAT.

If they can't tell you what the exact price is in advance, they must tell you how it will be calculated (ie £15 per head + 20% vat). They cannot say its £15 per head and then later add vat.

ETA: you basically have two options, pay under protest with the possibility of starting legal proceedings against them later or tell them that they entered into a legally binding arrangement and that you're not paying the extra (with the risk that it may or may not cause problems for your big day - all depends how decent the company are tbh)

As per consumer contract regulations, regardless whether its on-premises, off-premises or a distance contract, they need to provide you with:

(c)the total price of the goods or services inclusive of taxes, or where the nature of the goods or services is such that the price cannot reasonably be calculated in advance, the manner in which the price is to be calculated;

pappa_golf

unholyangel wrote: »

No they can't change the price after its been agreed - even if its to add on VAT.

If they can't tell you what the exact price is in advance, they must tell you how it will be calculated (ie £15 per head + 20% vat). They cannot say its £15 per head and then later add vat.

ETA: you basically have two options, pay under protest with the possibility of starting legal proceedings against them later or tell them that they entered into a legally binding arrangement and that you're not paying the extra (with the risk that it may or may not cause problems for your big day - all depends how decent the company are tbh)

As per consumer contract regulations, regardless whether its on-premises, off-premises or a distance contract, they need to provide you with:

"Their original quote, coming to about 5,000 didn't have any line items for VAT or any breakdown but included the line "All catering costs are subject to vat." under the price. "


or is that subjected to VAT?

RBS_Sucks

As you're not a business customer it would be unfair for you to assume VAT was to be added on. Their terms stating all catering costs are subject to VAT could be the line they use to get out of things and claim it was stated within the contract/invoice. It may not be much use now but in future any sizeable purchase should always have clarity on VAT as companies choose to show this differently and the answer may well just be in the detail which is not crystal clear. Never make any assumptions and always check as VAT will apply to more sales than not.

As a resolution, you should of course advise them of your disappointment and explain to them this is not a business to business transaction therefore there should be no reason for the final price not to be shown on the invoice with VAT appearing to be a hidden additional cost and you feel mislead. Try to keep calm throughout as it's easy to go off the handle. Should they not be willing to budge then you may wish to consider a counter offer of splitting the difference on the basis of the circumstances.

It's a difficult situation as it is for a wedding and further issues could develop but any reasonable company would understand the situation and make some sort of attempt to resolve the matter.

unholyangel

pappa_golf wrote: »

"Their original quote, coming to about 5,000 didn't have any line items for VAT or any breakdown but included the line "All catering costs are subject to vat." under the price. "


or is that subjected to VAT?

Not sure why you're quoting my post there. Care to elaborate?

bris

"All catering costs are subject to vat."
What did you think this meant? Catering services are subject to VAT, it's clear to me that the price would be +VAT.

The-Truth

unholyangel wrote: »

No they can't change the price after its been agreed - even if its to add on VAT.

But you're wrong. As it's already been announced VAT will be charged so it's not a surprise under the consumer contract regulations as you've stated it is.

Here's the op's original quote that proves it:

Questions855 wrote: »

included the line "All catering costs are subject to vat." under the price.

unholyangel wrote: »

As per consumer contract regulations, regardless whether its on-premises, off-premises or a distance contract, they need to provide you with:
“
(c)the total price of the goods or services inclusive of taxes

They clearly stated prices are subject to VAT so they did.

ERICS_MUM

Does 'subject to VAT' mean VAT will be added to the quoted price or that the quoted price includes VAT ?

I would say the OP should have clarified this at the time. I would also say the company should have made it clearer.

Sorry not much help, except to suggest meeting half way as a compromise. Certainly I wouldn't get into unpleasant discussions before the wedding which might jeopardise it.