VAT on Contract Meaning?

Frank99

I agreed a price for some work to be done of £340+vat which beat my 2 other quotes however, after having the work done, they sent me the invoice with vat added on top of the £340.
My understanding was that a written quote stating £340+vat was including vat but they are saying it would be say including vat.
I feel like an idiot, am i ? :mad:

shaun_from_Africa

If was given an quote of £340+VAT I would be expecting a final bill of £408.

If the price was including VAT then I would expect the quote to state either £340 inclusive of VAT or simply just £340 with no mention of anything else to be added.

Oakdene

It clearly is £340 plus VAT which is £408.

The + symbol means plus.

ScorpiondeRooftrouser

I'd agree with previous; £340 + VAT means VAT hasn't been added. £340 inc VAT means it has. I think this is pretty much absolutely standard phrasing.

agrinnall

The simple answer, I'm afraid, is Yes.

DCodd

To be fair to the OP, if they are a consumer I would expect any quoted figure to include VAT and any quotes we give to our clients who represent consumers always include the VAT element listed separately.


It certainly was the case and I haven't been told any different recently that all consumer quotes should be inclusive of VAT where applicable.


I'm assuming that The Consumer Protection from Unfair Trading Regulations 2008 is still the primacy law? If so:

(4) Where a commercial practice is an invitation to purchase, the following information will be material if not already apparent from the context in addition to any other information which is material information under paragraph (3)!!!8212;
(a)the main characteristics of the product, to the extent appropriate to the medium by which the invitation to purchase is communicated and the product;
(b)the identity of the trader, such as his trading name, and the identity of any other trader on whose behalf the trader is acting;
(c)the geographical address of the trader and the geographical address of any other trader on whose behalf the trader is acting;
(d)either!!!8212;
(i)the price, including any taxes; or
(ii)where the nature of the product is such that the price cannot reasonably be calculated in advance, the manner in which the price is calculated;

George_Michael

It all depends on what exactly the quote was for.


If it was for goods being sold to a consumer then yes, the quote must show a VAT inclusive price. (Covered by the Price marking order 2004).
If however, the payment was for a service then I think a VAT exclusive price can be shown provided that it is clearly stated that VAT will be added to the figure shown.

peachyprice

What did you think the + sign meant?

DCodd

George_Michael wrote: »

It all depends on what exactly the quote was for.


If it was for goods being sold to a consumer then yes, the quote must show a VAT inclusive price. (Covered by the Price marking order 2004).
If however, the payment was for a service then I think a VAT exclusive price can be shown provided that it is clearly stated that VAT will be added to the figure shown.

I'm not sure that is true.


As far as I understand it, if you sell services you have to account for the VAT at the place of provision if sold within the EU so UK services should show UK VAT and EU services can show ex VAT as the VAT is charged within the Country where the services are provided. Services sold outside of the EU can show zero VAT as UK and EU taxes don't apply. However, I'm no tax expert I just follow the instructions of my FC.

George_Michael

DCodd wrote: »

I'm not sure that is true.

I realise that this isn't from an official source but:

Where goods are offered for sale to consumers they must have their price clearly indicated and be inclusive of VAT. This is controlled by the Price Marking Order 2004, which applies to products only and is limited to sales between traders and consumers. It does not apply to services or products supplied in the course of the provision of a service

https://www.businesscompanion.info/en/quick-guides/pricing-and-payment/providing-price-information

It goes on to refer to the Unfair trading regulations and regarding that it only states that the total price to be paid must be clear.
IMO, stating £XX + VAT is clear and is generally understood by almost everyone.

However, in the Consumer Protection from Unfair Trading Regulations 2008 (CPRs, which control unfair practices used by traders when dealing with consumers) 'product' is defined more broadly and includes goods, services, rights and obligations. Therefore, although the Price Marking Order does not apply to services or products supplied in the course of providing a service, there is a requirement under the CPRs to make sure pricing information is given clearly if it would affect a consumer's decision to buy.

Frank99

I thought the sign + meant it included the vat, if the contract said £340 + £68 vat i would of understood.