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VAT on invoice, not on quote


Bibs

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My sister works for a charity that take waste food from supermarkets and upcycle it into 'pay as you feel' meals in Brighton. They recently had a walk in fridge installed and the quote they were given and accepted makes no mention of VAT whatsoever on it. The invoice however does, and they're being chased for the full amount. If the quote didn't include VAT, say VAT would be added nor had a VAT registration number on it, can the company add it to the invoice? In effect, their price was 20-odd% better than others as they quoted like this. 

(I've removed the company details but this is the quote). 

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88 Esprit NA, 89 Esprit Turbo SE, Evora, Evora S, Evora IPS, Evora S IPS, Evora S IPS SR, Evora 400, Elise S1, Elise S1 111s, Evora GT410 Sport

Evora NA

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I think a quote is exactly that Bibs and is subject to change upon completion of works done and if subject to VAT then it is to be added.   But that said every quote i have ever had has always included VAT in the quote as if the item is expensive as above it adds a hefty amount. 

Vat number should always be provided also as some companies add VAT when they are not even VAT registered and rip people off,  normally a free lance builders trick etc  !   

Hopefully some folks who actually know the law will post up and i will be very intrested to see what they say on the matter. 

A

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  • Gold FFM

Well if the company are vat registered they have to charge Vat period unless it's zero rated.  But that would also need to be shown on any estimate this can be in the small print.l

if not, that is not correct legally IMHO. Straight on to trading standards then pay it without vat and as ever do the lot by email. 

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  • Bibs changed the title to VAT on invoice, not on quote

If it were a quote to an end consumer then there'd be a strong case that that consumer would expect the quote to be the full price including VAT and any other "additions", if the quote were to a large corporate user they'd probably expect it to be pre-VAT (that's what we do at work), I'm guessing this one is in the grey middle ground. Any burden of proof would be born out in court, so if the charity were to send payment of the quoted amount, and make it clear that the payment is full and final as per the quote then the supplier may realise that they have little way to prove that there was anyway to expect the customer to know that VAT was to be added.  

Would the supplier really like the headline "XXXX company rips-off charity by lying about costs"?

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  • Gold FFM

To a domestic customer - quote plus vat and it's explained

To commercial customer - the quote is commonly assumed to be before the vat as nearly all commercial organisations are vat registered.

I always make sure I am explicit in the quote figure being plus vat no matter whom it's for

Only here once

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A quote is more of a contractural agreement than an estimate. I would just pay the amount quoted and let them pursue for the VAT.

:) 

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It's getting there......

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Had a quick look around the internet as we often get caught out like this (I now assume all quotes need VAT adding). It appears that if a quote does not specify VAT it should be assumed that 1. the business is not VAT registered or 2. they are VAT registered and the price includes the VAT. If they add on VAT to the figure quoted without specifying that VAT needs to be added it appears they are not acting within the law.

Unfortunately the government website is as useless as usual, as a charity have they engaged an accountant? - a quick phone call should answer the question.

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  • Gold FFM

I think they are out of order. I would pay it with no vat and then have the fight. I don't think there will be one, personally, as you need legally to state you are vat registered even if that is only the number. 

I don't think they have got a leg to stand on 

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  • Gold FFM

The fact is it's a b2b sale by the looks.

but - and it's a big but - down the bottom is "Grand Total" - and that means exactly that - grand total

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Only here once

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  • Gold FFM

Pretty much any quote I get for the business is VAT excluded. I don't even think about it, as it's always claimed back anyway. In this case, it's possible the supplier would have assumed the same, although I agree the "grand total" thing is a bit misleading. Is the charity VAT registered?

Margate Exotics.

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If they have charitable status they can get vat relief by telling their supplier and showing them proof and then the invoice should be raised vat free

hindsight: the science that is never wrong

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