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Double VAT?

#1
Going through the invoices for out build project.I see the landscaper we used has paid for some concrete and paid the vat on it.
Our invoice from him shows he has added the cost of the concrete and the vat together, then added vat to that total.
Before I ask him about it I assume it is an error on his partner is he doing the right thing?
 
#2
Don't think he should for materials, yes for the labour + vat.
Perhaps ask them why and see what they say?
 
#4
Going through the invoices for out build project.I see the landscaper we used has paid for some concrete and paid the vat on it.
Our invoice from him shows he has added the cost of the concrete and the vat together, then added vat to that total.
I'd assume he simply takes the total invoice value & adds a further margin on top?

say invoice of 1000 +vat becomes 1200+25+vat + labour ?

However check his vat no.
 
#5
I'd assume he simply takes the total invoice value & adds a further margin on top?

say invoice of 1000 +vat becomes 1200+25+vat + labour ?

However check his vat no.
He's not allowed to do that. It's up to the supplier whether he charges for Labour but it should be the inclusive figure. Generally it's Materials, extraneous costs and Labour, then VAT iirc
 
#6
VAT is an invidious and regressive tax because it can indeed be charged multiple times on a single item as it passes through several transactions.
 

overopensights

ADC
Book Reviewer
#7
As a vat payer with a lump to the revenue each three months, I gladly pay vat as the three months proceeds. It saves that big payout at term end. If he has given you two vat invoices and you are vat registered then no problem, as you claim it all back anyway. If you are not vat registered then pin him against a wall and take him to task.
 

Joshua Slocum

LE
Book Reviewer
#8
Going through the invoices for out build project.I see the landscaper we used has paid for some concrete and paid the vat on it.
Our invoice from him shows he has added the cost of the concrete and the vat together, then added vat to that total.
Before I ask him about it I assume it is an error on his partner is he doing the right thing?
is it new build, or an addition ?
new builds are zero rated for VAT
 

chimera

LE
Moderator
#9
He is in error. You should only be charged VAT once (in the final bill from the landscaper) - in other words the Government only gets VAT on the concrete once. As he is VAT registered, he reclaims the VAT he paid in his original purchase of the concrete under his own accounting arrangements.
 
#10
Cock up, possibly more so if a new build that qualifies as such.

Another fine trick of some murkier parts of the building trade is charging VAT whilst not being Registered sometimed "borrowing" somebody else's VAT registration number for the purpose and pocketing it the dosh.

Guy I know had the VAT number for his flooring business used thus which apart from defrauding the victim caused him no end of grief with HMRC
 
#12
Going through the invoices for out build project.I see the landscaper we used has paid for some concrete and paid the vat on it.
Our invoice from him shows he has added the cost of the concrete and the vat together, then added vat to that total.
Before I ask him about it I assume it is an error on his partner is he doing the right thing?
He has not charged you VAT twice, as such. But he has increased the cost of the materials by some 20% before passing the cost on. Not illegal.
 
#14
VAT is an invidious and regressive tax because it can indeed be charged multiple times on a single item as it passes through several transactions.
Yers the insidious part is that companies never pay the full cost in terms of output input, the customer does and he can't get tax relief unless they're a company or SE in which case they do the same. This means that the cost is actually down to the end user. It's one of the reasons there's a zero rated aspect otherwise there would be mutiny. As I recall it companies pay the difference between the two and that becomes a cost against corporation tax, thus reducing that. I'm sure someone out there will Yell, but I'm fairly sure that how it's supposed to work.
VAT is an Eu scam
Erm not quite; in fairness we just converted from Purchase Tax and called that VAT. However to TBF it does mean companies do have to pay elements and that means there's an audit trail through the processes. However there is still an issue with "off record"
 
#15
He has not charged you VAT twice, as such. But he has increased the cost of the materials by some 20% before passing the cost on. Not illegal.
thats what I was trying to say :)
 
#16
Another fine trick of some murkier parts of the building trade is charging VAT whilst not being Registered.
thats what I was imply when I said check his Vat no.
 

ugly

LE
Moderator
#17
Erm not quite; in fairness we just converted from Purchase Tax and called that VAT. However to TBF it does mean companies do have to pay elements and that means there's an audit trail through the processes. However there is still an issue with "off record"
Yes but it was dropping in an attempt to improve sales of domestic goods, the highest purchase tax was against goods needed for export or on imported goods which made sense. VAT was an invidious attempt to impose Eu principles upon us.
 
#18
thats what I was imply when I said check his Vat no.
When doing so need to be aware that if using the online mathematical checkers only shows that a VAT number itself is "valid"

Does not prove that it is the one of the business sticking it on an invoice nor that it has not been de-registered!
 
#19
Vat cash accounting means the co. pays the VAT on sales when its due.
Vat for the bigger co. means they pay on invoice value (they might have 500k invoice open but they still have to pay the vat element despite not being paid
There also a fixed rate where you pay less vat but can't claim it back eg you might pay 14%vat but get nothing back

Unless you have a written agreement that your paying the net value of goods + vat & not invoice value +vat It should fair to me.

I can't give goods at nett value unless there's a rebate or overcharging for qty happening
 
#20
When doing so need to be aware that if using the online mathematical checkers only shows that a VAT number itself is "valid"

Does not prove that it is the one of the business sticking it on an invoice nor that it has not been de-registered!
1st invoice in my pile...

vat.JPG
 
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