VAT Refund on UK Caravan Holiday

milnerrj

I have a caravan break booked with Hoaseasons in August and have paid a deposit.  I have just received the reminder to pay the remaining balance and they have not reduced it for the VAT reduction to 5%. I am sure if VAT had increased they would be billing me more, so why are they not passing in the VAT reduction? What rights do I have as the customer in this situation please?

sharpe106

I am sure if the VAT increased they would have found a way to increase the price. But you have no rights to a VAT reduction.

bradders1983

You probably agreed to pay (as an example) £360, and not "£300 plus VAT", therefore it doesnt matter how they split the money and lets be honest, you were clearly happy to pay the old price anyway.

And in any case, the "tax point" was at the point you paid the initial deposit.

tripled

milnerrj said:

I have a caravan break booked with Hoaseasons in August and have paid a deposit.  I have just received the reminder to pay the remaining balance and they have not reduced it for the VAT reduction to 5%. I am sure if VAT had increased they would be billing me more, so why are they not passing in the VAT reduction? What rights do I have as the customer in this situation please?

This has been covered repeatedly. The VAT rate they have to charge is the one at the "tax point" - see https://www.gov.uk/vat-record-keeping/time-of-supply-or-tax-point. They will have to hand over the full 20% to HMRC.

The only possible way to get around this is if they will allow you to cancel without penalty. You could then re-book at the lower VAT rate (however if they have upped their prices you wouldn't necessarily be any better off).

milnerrj

Well Hoseasons changed the invoice date and therefore tax point to the date that the final instalment was due in July. Therefore they paid the lower 5% VAT but did not pass on any saving to me as the customer.  Obviously their choice I guess, but as ever if it was the other way around and the VAT rate had increased it would undoubtedly be a different story! Leaves a sour taste for me regardless of the fact that I was willing to pay the agreed price in the first place. Of course I was or I wouldn't have a holiday for my kids!