Failure to pass on VAT Rate Reduction

dumbletonrc

I booked a golf package break  package for 4 in England via an online agent.    The booking was made pre Corona Virus lock-down and deposits paid for a break in August 2020.    In July 2020 the Chancellor changed the prevailing rate of VAT from 20% to 5% until January 2021 for the hospitality sector in order to stimulate the economy. .  As the golf break balance was to due to be paid after this change in VAT rate I asked the agent if the remaining balance would reflect the new prevailing rate of VAT.   I was told no.   I then contacted the golf package service provider Marriott Hotels UK who also said no and told me that any changes in VAT should be addressed by the agent.   In other words both parties said it was the others responsibility and neither party was willing to take responsibility.   It is my belief that this VAT rate reduction should be passed on to the paying Customer and not retained by the agent, supplier or both as would appear to be the case.        Do I have any right of claim and if so how would I proceed?

Thrugelmir

Totally up to the business whether the cut in VAT rate is passed on.  Some businessess may well take the view that they cannot afford to. You have no rights to claim anything. 

Penguin_

It might be your belief, but you're wrong.

Penguin_

Also it doesn't matter when you pay the balance, it depends on the tax point of the package.

uknick

Passing the reduction on to the customer is at the seller's discretion, so I'm not sure what sort of claim you're considering.

If you're going to argue they're charging too much VAT, all they need to do is to increase the net price so that after adding 5% VAT you end up with the same price. Is this fair?  To my mind the reduction in VAT is to help suppliers stay in business so any extra profit they can make can only help this.

Hasbeen

dumbletonrc said
   It is my belief that this VAT rate reduction should be passed on to the paying Customer 

  Do I have any right of claim and if so how would I proceed?

Your belief is wrong.


You do not have any claim.


The VAT reduction was to help suppliers to keep going. Not to give customers get cheaper deals.

theoretica

Did you book for a price of £Y or £X + VAT?

Hasbeen

theoretica said:

Did you book for a price of £Y or £X + VAT?

Do you mean when OP booked it was a price of £Y or £X + 20% at that time? Would assume plus vat as per OP wanting refund down to 5%? perhaps OP can clarify?

dumbletonrc

Thank to those who have posted their comments and considered views, very helpful (mostly).

csgohan4

dumbletonrc said:

Thank to those who have posted their comments and considered views, very helpful (mostly).

Sorry you didn't hear what you wanted, reality is many business are struggling and the VAT discount is for the business  and not the customer. People are losing their jobs sadly which I am sure you think isn't your problem but every little helps