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Farm Machinery
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eBay question
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<blockquote data-quote="Goweresque" data-source="post: 6360264" data-attributes="member: 818"><p>Buy one as Joe Public, once you've got it demand a VAT invoice. If they refuse threaten to dob them in to HMRC...........even if you never get one you'd have paid the same for the item if they'd charged you 2350+vat and you'd got it back.....</p><p></p><p>My feeling is this is not a VAT scam, its a customer psychology scam.</p><p></p><p>Lets say the real selling price is around £2000+vat, hence the £2350 price listing. Joe public sees the ad, likes the price, pays up, Vatman gets just under £400, vendor gets just under £2k, everyone happy.</p><p></p><p>However when you ring up as a Vat customer, the price goes up to £2350+vat, because the vendor knows you're interested at £2350 (as that was the advertised price) and also knows you'll get the Vat back as a business buyer so says the price is £2350+vat, in the knowledge that more often than not the VAT buyer will buy at that price. And the vendor makes an extra £350.</p><p></p><p>Its variable pricing, not variable VAT calculation. There's no law that says every customer must pay the same base price, just that whatever the sale price of any individual transaction is, the Vatman must get the correct % cut.</p><p></p><p>Its quite clever use of psychology actually.</p></blockquote><p></p>
[QUOTE="Goweresque, post: 6360264, member: 818"] Buy one as Joe Public, once you've got it demand a VAT invoice. If they refuse threaten to dob them in to HMRC...........even if you never get one you'd have paid the same for the item if they'd charged you 2350+vat and you'd got it back..... My feeling is this is not a VAT scam, its a customer psychology scam. Lets say the real selling price is around £2000+vat, hence the £2350 price listing. Joe public sees the ad, likes the price, pays up, Vatman gets just under £400, vendor gets just under £2k, everyone happy. However when you ring up as a Vat customer, the price goes up to £2350+vat, because the vendor knows you're interested at £2350 (as that was the advertised price) and also knows you'll get the Vat back as a business buyer so says the price is £2350+vat, in the knowledge that more often than not the VAT buyer will buy at that price. And the vendor makes an extra £350. Its variable pricing, not variable VAT calculation. There's no law that says every customer must pay the same base price, just that whatever the sale price of any individual transaction is, the Vatman must get the correct % cut. Its quite clever use of psychology actually. [/QUOTE]
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