Part prices & VAT

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Thu 14 Feb 2002 15:27
Part prices & VAT - Big Vern
I have often wanted to know why so many trades quote figures as x + VAT I am under the impresion that you have to pay the VAT and then claim it back if you are eligible to do so. Does anybody actually buy things just because it sounds less when quoted - VAT???

My earlier thread 'Tyre choice & fitting' I said that I have decided to buy my tyres from my local ATS partly due to the bloke on the phone being helpful, he was also the only one to quote with VAT.

Perhaps I should get out more? :-)
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Thu 14 Feb 2002 16:47
Re: Part prices & VAT - Andrew Smith
It's always amused me that Kwik Fit will never quote the actual price to fit a tyre. It's always £xx.xx to fit plus vat valves and balancing. They will tell you the price of the valves and balancing but will never add it up to a simple price to fit x.
I went to the Hi-Q place next door (literally!) and they quoted me a price to fit straight off. Also £40 a corner cheaper so you can guess who got the money.
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Thu 14 Feb 2002 17:14
Re: Part prices & VAT - Mick
When advertsing to consumers by law you must quote the VAT inclusive price. When selling to businesses you can say £X plus VAT. See para 9 Price Markings Order 1991 SI 1991/1382
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Thu 14 Feb 2002 17:25
Re: Part prices & VAT - alvin booth
Have always bought my tyres from the usual ATS and Tyreways etc.
But for the last pair of tyres for my wifes car I took a quote from them for Goodyear GT3 and then went to a little general garage in town with one man and his helper.
Best price from the big boys for the two was £100.00.inclusive
The small garage rang up his supplier, tapped his calculator a few times and for the two Goodyear GT3 quoted £84.00 inclusive of fitting and balancing etc.
Perhaps this is the way to do it because the big ones have much higher overheads to pay and the small garage is also doing his normal repairs and servicing.
Alvin
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Thu 14 Feb 2002 19:54
Re: Part prices & VAT - Guy Lacey
The latest scam to take place, mainly through high-tech retailers is to charge a "card fee" for the use of a credit/debit charge - even if you pay by cash, oddly. The reason being, this reduces their VAT liability as this charge is zero rated. Those paying by cash rarely question this "card charge" - beware of this spreading to other companies such as those quick-fit type tyre vendors (+ shocks if you don't know your onions)

I have always bought my tyres from the local garage as they usually let you have them trade plus a bit and fit them for free - after all it only takes a few minutes. If they get two services a year, an MOT and any remedial works from you then it has paid itself back ten-fold.
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Fri 15 Feb 2002 09:23
Re: VAT scam - Matt Kelly
Good story about this in the Independent yesterday

makeashorterlink.com/?I2E412B6
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Sun 17 Feb 2002 03:53
Re: Part prices & VAT - Idris Francis
very simple answer!

When running a VAT-registered business, allowed to reclaim VAT, you are not in the last interested in the VAT inclusive price, but only the exclusive price 0 what the item actually costs you,

Of course you know that you have to add VAT to your selling figure, but that is accepted and identiable as such

If you are either exporting or selling mainly to other VAT registered companies, your customers do not care either

Idris Francis
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