Bad Dreams

Murphybear

Probably more of a rant than a question of what to do, but Dreams have annoyed me so much I could scream:eek:

I have an adjustable bed which is eligible for zero rated VAT, and recently decided it needed a new mattress. I bought it from Dreams, who I bought the bed from originally. I mentioned zero VAT for the mattress and was told it “may not” be eligible and to contact customer services. Before doing this I emailed HMRC to check that my mattress on its own was eligible for VAT relief. Their VAT department contacted me and explained in writing that if the mattress was bought solely for use on an adjustable bed it was eligible.

Dreams are saying it’s not:(. I sent them a copy of the HMRC letter which they have ignored.

The exchange with Dreams went through Resolver. They have suggested I can escalate it and contact the Ombudsman which I could do or I could take Dreams to the small claims court, with the evidence from HMRC VAT people don’t see how I could lose.

Any thoughts, ideas, suggestions? Has anyone else had this problem? Mattresses for adjustable beds are expensive as they have to undergo years of being folded mechanically so the VAT was quite a lot.

davidmcn

Murphybear wrote: »

I mentioned zero VAT for the mattress and was told it “may not” be eligible and to contact customer services.

Was this before or after you bought the mattress and paid the VAT?

TrickyDicky101

I don't think taking Dreams to court would work as they are merely collecting the VAT on behalf of HMRC. If the wrong VAT has been applied then it's from HMRC you need to get it back.

I'm not a lawyer nor a VAT specialist though.

Really, you should have agreed with Dreams in advance what VAT rate would apply and gone elsewhere if they didn't accept it as zero-rated.

twhitehousescat

in a case like this , do you not apply to HMRC for a vat refund

just think anyone could walk into dreams , or other shops , pay cash and get 20% off by saying they are entitled to vat free

Murphybear

TrickyDicky101 wrote: »

I don't think taking Dreams to court would work as they are merely collecting the VAT on behalf of HMRC. If the wrong VAT has been applied then it's from HMRC you need to get it back.

I'm not a lawyer nor a VAT specialist though.

Really, you should have agreed with Dreams in advance what VAT rate would apply and gone elsewhere if they didn't accept it as zero-rated.

According to HMRC I must get it back from Dreams.

Murphybear

twhitehousescat wrote: »

in a case like this , do you not apply to HMRC for a vat refund

just think anyone could walk into dreams , or other shops , pay cash and get 20% off by saying they are entitled to vat free

According to HMRC then Dreams must refund it to me. Before I can claim it back I have to get a GP letter proving I have an appropriate medical issue so no, people can’t just walk in and claim it.

twhitehousescat

much as I disagree with you , you have your answer , if you wish a refund comply with it

Penguin_

I believe, that one of the manufacturers (I think it might be Tempur), get you to complete a form following payment, delivery etc which when sent back will trigger a refund. A friend of mine did it & as an accountant I was curious as to the process. Perhaps Dreams have something similar.


Edit: indeed they do. See link https://www.dreams.co.uk/Webfiles/Assembly/Customer_VAT_Declaration_Form_2018.pdf

twhitehousescat

https://www.gov.uk/guidance/vat-relief-on-certain-goods-if-you-have-a-disability

How to prove that you qualify for VAT-free goods
Eligibility declarations
To show that you’re entitled to buy the goods VAT-free, your supplier will probably ask you for a simple written declaration stating your eligibility. If the supplier does not give you a form to fill in you can use our suggested version.

You’ll need to do a separate declaration for each supplier for them to keep with their VAT records.

Do not send completed declarations to HMRC.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/419380/Eligibility_Declaration_Disabled_-_March_2015__2_.pdf



took 30 seconds to google that info , print off the form and full it in

spadoosh

Theyve incorrectly charged you VAT.

HMRC are correct in saying you need to deal with Dreams.

I think the relevant VAT legislation surrounding your issue is here.

4.3 Electrically or mechanically adjustable beds, chair or stair lifts, hoists and lifters, sanitary devices
You can zero rate the supply to an eligible person as explained in paragraph 3.1 of:

an electrically or mechanically adjustable bed designed for invalids
a stair lift or a chair lift designed for use in connection with a wheelchair (it is not necessary for the lift to carry the person whilst seated in the wheelchair)
a hoist or lifter designed for use by invalids – this includes riser-recliner chairs, sometimes also called lift and tilt chairs, but does not include recliner chairs which do not have the lift or tilt facility
commode stools, commode chairs or devices with a warm air drier and bidet jet incorporated, frames or other devices to help sitting on or rising from a sanitary appliance
A bed will not be eligible for relief unless it clearly stands out as being something specialised for the use of invalids such as being similar to a hospital bed. As well as being electrically or mechanically adjustable, it should have specific design features that distinguish it from a standard bed, such as being:

fitted with cot sides
height adjustable
A mattress is only eligible for this relief if it’s either:

supplied as part of a single supply of a qualifying bed
designed solely for use by a disabled person, see paragraph 4.5

https://www.gov.uk/guidance/reliefs-from-vat-for-disabled-and-older-people-notice-7017#electrically-mechanically-beds-chairs-etc

I dont think youre covered under th second part, 'solely for use by a disable person' but should be covered by the 'supplied as part of a single supply of a qualifying bed'.

That reads like if the bed qualified for it, any replacement (single supply) should be covered.

Dreams have a VAT recovery form here...

https://www.dreams.co.uk/Webfiles/Assembly/Customer_VAT_Declaration_Form_2018.pdf

although guessing this has either been done or dismissed?

Id try directing them to the relevant legislation surrounding it. Hopefully get something from that, if not its going to be ombudsman or small claims court. Think id go small claims court with a complaint to the ombudsman.