VAT added to catering costs shortly before wedding

photome

Questions855 wrote: »

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...

I would have assumed that meant VAT was to be added to the quoted price and budgeted accordingly.

If I was unsure as the OP seems to be I would have clarified with the company.

seems I may be in the minority though

Questions855

I would have assumed that meant VAT was to be added to the quoted price and budgeted accordingly.

If I was unsure as the OP seems to be I would have clarified with the company.

seems I may be in the minority though

OP here. Unfortunately it never occurred to check as i just read over it assuming the final price they listed was the final (inclusive) price. That lesson on checking up has definitely been learned the hard way....

That said this is not a business to business transaction and it feels to me a reasonable person could think the price is inclusive of VAT, especially since the rate or price inclusive of VAT is never stated. It also doesn't say that the price quoted is exclusive of VAT, only that it is applicable, not by whom it is paid.

antrobus

Questions855 wrote: »

...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...

It's a simple matter of law - All price indications you give to private consumers, by whatever means, should include VAT.

If a business quotes a price to a consumer that does not include VAT, that would be a misleading price indication, which is an offence for which the business can be prosecuted.

J_B

bris wrote: »

"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 wrote: »

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.

photome wrote: »

I would have assumed that meant VAT was to be added to the quoted price and budgeted accordingly.

If I was unsure as the OP seems to be I would have clarified with the company.

seems I may be in the minority though

Maybe as I've been caught this way before I would agree with these three - if it says 'subject to vat' it means that their quote is what they charge you for what they do, then HMRC adds another X%

kazwookie

Why not ring the HMRC vat line and ask them? they maybe able to give you the legal bit of yes this is ok or not it is not ok.

Stevie_Palimo

RBS_Sucks wrote: »

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.

Wrong and as stated below VAT can be charged and this could be a simple case that business is flourishing and had to register for VAT, As long as the invoice stated subject to VAT then you either suck it up or cancel with a view to lose deposit if paid and have the hassle of finding another caterer.

In terms of negotiating well worth while calling them and explaining that money is tight for you and see if the will work out a deal to keep this on track.

daytona0

Not sure if it changes anything, but OP said:

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

So by my understanding, they have been invoiced for the correct amount and they were given a quote for the cost of items exclusive of VAT.

George_Michael

antrobus wrote: »

It's a simple matter of law - All price indications you give to private consumers, by whatever means, should include VAT.

If a business quotes a price to a consumer that does not include VAT, that would be a misleading price indication, which is an offence for which the business can be prosecuted.

For the sale of good, not always for the provision of services.
This is covered by the "price marking order"
http://www.legislation.gov.uk/uksi/2004/102/article/3/made

Scope of application of the Order

3.—(1) This Order shall not apply:
(a) to products which are supplied in the course of the provision of a service; or

sheramber

IF the quote was done a while in advance the rate of VAT may have changed before the payment was made so they couldn't state the final price including VAT. Hence, stating the costs are subject to VAT ( to be added at the rate in force at the time of the final invoice.)

unholyangel

The-Truth wrote: »

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:





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

No I'm not wrong as they need to tell the consumer the total price including taxes. As the bit I quoted said:
(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;


As this page from trading standards also explains:
http://www3.hants.gov.uk/tradingstandards/tradingstandards-consumer/goodsandservices-consumers/tsguide-pricing.htm

Or this guidance: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/31900/10-1312-pricing-practices-guidance-for-traders.pdf

Which states:

Valued Added Tax (VAT)
(i) Price indications to consumers
2.2.9 All price indications you give to consumers, by whatever means, should
include VAT. This total price must be displayed prominently so that consumers can
see it.