Refund on Tax for a service provided last year but refunded this year

g1ose

Hi All,

Long story which I won't go into but I need some help/advice if possible.

Last year (october) I paid for a service for which after 5 months I am now asking for a refund due to the service being provided not being up to standard.
The company are pushing back on refunding this service fee how ever they have stated that if they did refund it, it would be less the VAT paid.

Is this correct or are they trying it on to reduce the amount they would pay. I get that it would have been 'paid' last year but surely if the fee was subsequently refunded so could the VAT be?

Interested in your thoughts on this. Apologies if this is not the right forum for it, was hard to pinpoint something that seemed correct.

Thanks

00ec25

2 separate issues

1. the amount of money the company is willing to refund

2. however much or little money they do refund will be deemed to be INCLUSIVE of VAT since they are a VAT registered business

the timing of the "service" is utterly irrelevant, they are simply looking to reduce the amount they propose to repay you.
Don't forget they are going to lose money anyway since they will incur bank charges on receiving the money in the first place and on repaying you at all. Normally businesses would take such a loss on the chin, seems like this lot are not prepared to do so - "VAT" is a red herring since the VAT any refund they give will cancel out the VAT they had to pay on the original sale - yes a timing difference, but no impact on actual £ they paid to HMRC

g1ose

Thanks for the response, very helpful. I will see what they say when I challenge it, I expect they are, as you say, looking for any option to get out of it!