VAT on tools

[colhonk]

Just bought 2 of Halfords Industrial toolboxes that were on offer, The receipt shows the vat at about 11%. Phoned customer service and they know nowt about vat, phoned the store and guess what? they know nowt about the vat rate either. waiting for store manager to work it out. but surely the vat rate should be 20%.

 

[Andbarbred]

Not that it should make any difference to the VAT %, but how much were they on offer for?

 

[colhonk]

£299

 

[multi power]

Isn't it just that they were on offer that mucks up the ticket price?

 

[Drillman]

I bought 2 before xmas from halfords, big one on wheels was £124 reduced from £250, and a smaller one on top at £74 reduced from £125.

So £198 in total. Got 20% vat knocked off that as well so ended up down in the £160s iirc.

 

[Clive]

VAT is 20% on tools no matter what Halfords say, must be something wrong with their system ??

 

[ACEngineering]

Just bought 2 of Halfords Industrial toolboxes that were on offer, The receipt shows the vat at about 11%. Phoned customer service and they know nowt about vat, phoned the store and guess what? they know nowt about the vat rate either. waiting for store manager to work it out. but surely the vat rate should be 20%.

Sounds odd to me too!

I had a running with Argos just over 12months ago! bought a surface 3 laptop thingy, emailed for vat invoice and then phoned customer services several times asking for a vat invoice was like getting blood out of a stone! then I had an email saying they had credited me phoned customer services again said I wanted a vat invoice but she kept on about the credit so I ended up going along with it and she credited my card back the full amount all I wanted was a vat invoice

Still wife was happy with her present

 

[Andbarbred]

VAT is 20% on tools no matter what Halfords say, must be something wrong with their system ??

Yes that's right, no one can knock the VAT off, whatever you pay, 20% of it is the VAT.
Some retailer advertise VAT free Saturday's, but all it means is that something costing £100 + vat (£120.00) can be bought for £83.33 + Vat. (£100.00)

No way round it, if you are VAT registered, it has to be charged at the required rate, and can be claimed back if allowed.

 

[Goweresque]

It'll be some problem with the IT system which can't cope with the sale price reduction. Doesn't matter from your perspective, whatever the sale price is, legally there is VAT at 20% in there, so you can reclaim the same. Its like all this 'We pay your VAT' nonsense. No, you don't, the reduced price still contains VAT, and I can claim that back too (if its a business expense of course )

 

[opininionated]

It'll be some problem with the IT system which can't cope with the sale price reduction. Doesn't matter from your perspective, whatever the sale price is, legally there is VAT at 20% in there, so you can reclaim the same. Its like all this 'We pay your VAT' nonsense. No, you don't, the reduced price still contains VAT, and I can claim that back too (if its a business expense of course )

Sounds like Halfords are due a VAT inspection....

 

[Lincsman]

It'll be some problem with the IT system which can't cope with the sale price reduction. Doesn't matter from your perspective, whatever the sale price is, legally there is VAT at 20% in there, so you can reclaim the same. Its like all this 'We pay your VAT' nonsense. No, you don't, the reduced price still contains VAT, and I can claim that back too (if its a business expense of course )

I think you can only claim the VAT charged on the invoice as thats what they will pay, often invoices are a penny out according to sage (rounding), and some postage isnt vatable, but you have to claim the invoiced amount.
Now if they pay more than 11% to HMRC it up to them

 

[colhonk]

Store manager phoned the next day and apologized, e-mailed an invoice with the correct vat shown.

 

[Andbarbred]

I think you can only claim the VAT charged on the invoice as thats what they will pay, often invoices are a penny out according to sage (rounding), and some postage isnt vatable, but you have to claim the invoiced amount.
Now if they pay more than 11% to HMRC it up to them

I don't think businesses can choose how much VAT to charge, if the goods are subject to VAT then the appropriate rate has to be charged,
The online submission process alerts you if the amounts aren't what it expects them to be.

 

[bovine]

I think you can only claim the VAT charged on the invoice as thats what they will pay, often invoices are a penny out according to sage (rounding), and some postage isnt vatable, but you have to claim the invoiced amount.
Now if they pay more than 11% to HMRC it up to them

That's my understanding too. One company we deal with produces an invoice showing the VAT amount and then offers settlement discount if paid before a particular date. My accountant assures me I can claim the full invoiced VAT back even though it is techniclly more than 20% of the price I pay with the settlement discount.

 

[Nearly]

Sounds like Halfrauds are due a VAT inspection....

 

[Badshot]

That's my understanding too. One company we deal with produces an invoice showing the VAT amount and then offers settlement discount if paid before a particular date. My accountant assures me I can claim the full invoiced VAT back even though it is techniclly more than 20% of the price I pay with the settlement discount.

You're claiming back more vat than you're paying!!
Was nice knowing you.

 

[Lincsman]

You're claiming back more vat than you're paying!!
Was nice knowing you.

No he isnt, thats the VAT he paid. The company MUST pay HMRC the amount on the invoice, 1p over (or under) 20% or £10 over 20% makes no odds.

A tractor dealer here offers early pay discount, the VAT is on the discount figure, so if you pay late the VAT will be about 17%, but thats still the figure you use.

 

[Lincsman]

I don't think businesses can choose how much VAT to charge, if the goods are subject to VAT then the appropriate rate has to be charged,
The online submission process alerts you if the amounts aren't what it expects them to be.

No they cannot choose, but you just copy what they print to your accounts, right or wrong, its not your problem.

 

[opininionated]

That's my understanding too. One company we deal with produces an invoice showing the VAT amount and then offers settlement discount if paid before a particular date. My accountant assures me I can claim the full invoiced VAT back even though it is techniclly more than 20% of the price I pay with the settlement discount.

A settlement discount would conversely be a credit charge, credit charges aren't subject to VAT, so they shouldn't really be charging VAT on that element of the invoice.

 

[sawdust]

You're claiming back more vat than you're paying!!
Was nice knowing you.

Another stupid part of the law is, that if you send me an invoice and I never pay you! you still have to pay the vat you charged me on the invoice!! and I can claim back the vat which you charged me, and never paid!!!