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Quote for work unsure of vat situation

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Comments

  • neilmcl
    neilmcl Posts: 19,460 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 5 August 2020 at 10:29AM
    Prices given or displayed to consumers should include VAT.

    If you wish to query it I would wait until the job has been finished to a good standard. 
    Only prices on goods sold to consumers in shops, internet etc should include VAT. It's quite acceptable for quotes for services, such as building works to show VAT as a separate item, which includes phrases such as "plus VAT". Only when you get the invoice should the VAT be shown as an itemised amount.

    @newfoundglory , do not follow the advice to leave it until the work is complete, if you're not sure get the quote clarified from the start.

  • the_lunatic_is_in_my_head
    the_lunatic_is_in_my_head Posts: 9,614 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 5 August 2020 at 10:54AM
    neilmcl said:
    Prices given or displayed to consumers should include VAT.

    If you wish to query it I would wait until the job has been finished to a good standard. 
    Only prices on goods sold to consumers in shops, internet etc should include VAT. It's quite acceptable for quotes for services, such as building works to show VAT as a separate item, which includes phrases such as "plus VAT". Only when you get the invoice should the VAT be shown as an itemised amount.

    @newfoundglory , do not follow the advice to leave it until the work is complete, if you're not sure get the quote clarified from the start.

    Thanks for the clarification, although to check the CCR mentions providing prices including taxes for both on and off premises contracts? 

    On the 2nd point, given the work appears to have started personally I wouldn't want to risk creating a negative environment 3 hours after the job has started over £86.  

    Unless the OP is going to stop the job if the price is + VAT what does it achieve at this point? 
    In the game of chess you can never let your adversary see your pieces
  • The_Rainmaker
    The_Rainmaker Posts: 1,483 Forumite
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    Just pay the guy cash and the VAT issue disappears.
  • Jumblebumble
    Jumblebumble Posts: 2,039 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    edited 6 August 2020 at 12:18PM
    neilmcl said:
    Prices given or displayed to consumers should include VAT.

    If you wish to query it I would wait until the job has been finished to a good standard. 
    Only prices on goods sold to consumers in shops, internet etc should include VAT. It's quite acceptable for quotes for services, such as building works to show VAT as a separate item, which includes phrases such as "plus VAT". Only when you get the invoice should the VAT be shown as an itemised amount.

    @newfoundglory , do not follow the advice to leave it until the work is complete, if you're not sure get the quote clarified from the start.

    The Advertising Standards authority disagree and so do I
    https://www.asa.org.uk/uploads/assets/uploaded/adac9dec-45de-4bfe-90a1194ba10ad1d2.pdf
    Quoted prices must include non-optional taxes, duties, fees and charges that apply to all or most buyers. However, VAT-exclusive prices may be given if all those to whom the price claim is clearly addressed pay no VAT or can recover VAT. Such VAT-exclusive prices must be accompanied by a prominent statement of the amount or rate of VAT payable.

    In my view it is completely unacceptable as  the only reason any company would quote VAT exclusive to a consumer is to try to mislead them when quoting against non VAT registered competitors unless you can think of a compelling alternative
    The OPs case being a perfect example
  • Spank
    Spank Posts: 1,751 Forumite
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    OP have you contacted the builder to find out if it includes VAT (I'm with Pinkshoes & think it does) or not? 
  • Mickey666
    Mickey666 Posts: 2,834 Forumite
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    In my view it is completely unacceptable as  the only reason any company would quote VAT exclusive to a consumer is to try to mislead them when quoting against non VAT registered competitors unless you can think of a compelling alternative
    The OPs case being a perfect example
    Well, acceptable or not, I've had loads of building quotes over the years and can't remember any of them being VAT-inclusive prices.  They've all been £xxx +vat.
    I've always assumed this is because VAT isn't really a 'thing' for the builders, just something they have to collect and pass on to the VATman.
    Anyway, this whole thread is somewhat academic - the OP just needs to ask their builder for a definitive answer, not a bunch of strangers on the internet who can only make guesses.

  • The Advertising Standards authority disagree 
    But since this thread is not about an advert, I would question the relevance of their opinion 
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