Can hotels still quote 20% VAT

fraser9569

Hi all, does anyone have any experience with this new 5% VAT for hotel rooms?  I’ve got an invoice in for a group booking today stating all prices inclusive of 20% VAT.  Should I bring this up with the hotel to see if I’ll get a reduced price before confirming the booking or should I bring it up after I’ve stayed there?  Reason being they don't have to pass on the extra 15% to the customer so they’ll possibly change the wording to state 5% and keep the price the same.  But If I keep the invoice stating 20% after staying do I then I have the right to claim back the addition 15% from them?
I’ve checked everywhere online and it seems to be a bit of a minefield, nothing too clear on it. 
Thanks!

bradders1983

No you dont have the right to claim the extra 15%

But what you could do is ask them for a revised invoice as the VAT rate on it is wrong and see what they do. Either they just adjust it so that it all comes out at the same price anyway, or a few quid comes off it. No harm in trying but at the end of the day their VAT affairs are none of your business. 

fraser9569

bradders1983 said:

No you dont have the right to claim the extra 15%

But what you could do is ask them for a revised invoice as the VAT rate on it is wrong and see what they do. Either they just adjust it so that it all comes out at the same price anyway, or a few quid comes off it. No harm in trying but at the end of the day their VAT affairs are none of your business. 

Thanks for the input but I'm a little confused as to why their VAT affairs are none of my business if I'm the one being charged the VAT?  Surely this is exactly my business as it's money coming from MY bank account. 

daveyjp

The hotel may have simply not had time to update all their stationery templates and systems.

As this may be a discrepancy under current VAT rules (you would need to check the tax point) by all means bring it to their attention.  They may apply 5% to the ex VAT price and you pay less or they will send you a VAT inclusive invoice for the same total amount as the 20% invoice stating VAT is charged at 5%.

bradders1983

fraser9569 said:

bradders1983 said:

No you dont have the right to claim the extra 15%

But what you could do is ask them for a revised invoice as the VAT rate on it is wrong and see what they do. Either they just adjust it so that it all comes out at the same price anyway, or a few quid comes off it. No harm in trying but at the end of the day their VAT affairs are none of your business. 

Thanks for the input but I'm a little confused as to why their VAT affairs are none of my business 

Because it isnt. Do you ask ASDA about their VAT affairs when you go and do the weekly shop? When you see a packet of chocolate biscuits priced at £1.05, do you ask if they cost £1.20 the other week? 

Unless you are a business customer (you dont state if you are) you are always going to have headline prices including VAT, how that is split between the service/product and the tax is totally irrelevant to the consumer. 

bazzyb

fraser9569 said:

bradders1983 said:

No you dont have the right to claim the extra 15%

But what you could do is ask them for a revised invoice as the VAT rate on it is wrong and see what they do. Either they just adjust it so that it all comes out at the same price anyway, or a few quid comes off it. No harm in trying but at the end of the day their VAT affairs are none of your business. 

Thanks for the input but I'm a little confused as to why their VAT affairs are none of my business if I'm the one being charged the VAT?  Surely this is exactly my business as it's money coming from MY bank account. 

Have you asked them where they source their toilet tissue from, to check they are using a supplier of which you approve, after all it is your business, as it is your money coming from your bank account which they are using to pay for their toilet tissue. 

Penguin_

You may have an invoice, but what is the date on the invoice?

macman

More precisely, what is the tax point on the invoice? That is what determines the VAT rate. Anything from 15/7/20 should be billed at 5%.

gettingtheresometime

fraser9569 said:

bradders1983 said:

No you dont have the right to claim the extra 15%

But what you could do is ask them for a revised invoice as the VAT rate on it is wrong and see what they do. Either they just adjust it so that it all comes out at the same price anyway, or a few quid comes off it. No harm in trying but at the end of the day their VAT affairs are none of your business. 

Thanks for the input but I'm a little confused as to why their VAT affairs are none of my business if I'm the one being charged the VAT?  Surely this is exactly my business as it's money coming from MY bank account. 

If they advertise a room at £120 per night inclusive of VAT  then that's what you pay regardless of the VAT rate.
Previously it would have meant that the hotel had to hand over £20 to HMRC whilst , for the present, they only have to had over £5.71.
So Bradders is right - it is none of your business.

macman

You are missing the point. The hotel is perfectly at liberty to raise their ex-VAT price so that the room still costs £120 inclusive, but they can't maintain the original VAT exclusive price and then add 20% VAT after 15/7.

p00hsticks

macman said:

You are missing the point. The hotel is perfectly at liberty to raise their ex-VAT price so that the room still costs £120 inclusive, but they can't maintain the original VAT exclusive price and then add 20% VAT after 15/7.

I may be wrong but I thought UK consumer laws say that unless it is a business to business transaction a company has to quote prices inclusive of VAT. So they shouldn't be listing VAT exclusive prices.