Viewing 12 posts - 1 through 12 (of 12 total)
  • VAT effect on back orders
  • plant
    Free Member

    Hi,

    Assuming VAT will increase sometime soon, what is the effect on backorders from a supplier?

    I ordered some photographic gear in April and am still waiting for the goods to come in – I knew there was/is a long lead time, so no real issue with this but, I ordered on the basis of a known VAT rate and cost.

    When I spoke to the supplier, they said VAT is the law and I will be charged the full rate at the time of completing the order. I offered to pay now but they wouldn't accept it.

    I asked if they would consider absorbing the VAT increase themselves as it was obvious I was not trying to get an order in quick to beat any VAT increase. They said NO.

    I asked if there was someone else I could speak too and the response was "anyone else will just say the same". So I asked if I could raise a complaint and be escalated. The response was "There's no point, everyone will say the same".

    I come from a service industry and being told "No" when asking to raise a complaints was like a red rag to a bull. I was finally advised that someone would contact me before the end of the day but guess what, no call.

    Anyways ……. customer service aside, I still want the goods and there is no point me cancelling the order as I will just join the queue elsewhere.

    What is the potential amount? Circa £20

    I hear some of you saying "What's the fuss, pay up, we all have to do our bit" etc. etc., but, by the same token, £20 will keep my business if they absorb it. It will be a loss if they don't.

    And note I have not said who the retailer is ….. I will be shouting it if they don't absorb the costs …..

    Cheers,

    Carl.

    cynic-al
    Free Member

    Legally I think you are stuffed, why not argue with HMRC or google it? IIRC VAT is applied when the invoice is raised, and I guess your supplier doesn't want to raise the invoice yet (and may not be entitled to) yet. (EDITED)

    You sound great to deal with btw, TF you are not my customer. 😛

    Jerome
    Free Member

    If you paid now then you get todays VAT.
    Not sure why they are not willing to work on this basis
    J.

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    dmjb4
    Free Member

    Pretty sure there was HMRC guidance on this and that invoice date was critical?

    missingfrontallobe
    Free Member

    We bought a new caravan last year, deposit paid in September, delivery arranged for January (so VAT would have increased to 17.5% in the meantime). Dealer invoiced us at the beginning of december and we paid the balance before the end of the month, but they recognised that the real situation should have been VAT at 17.5%. To be fair they'd messed us around royally on the delivery of this caravan, so if they'd honoured the original delivery date we'd have only been paying 15% VAT anyway.

    dmjb4
    Free Member
    Sam
    Full Member

    It's all down to when they invoice you. If they don't want to raise an invoice now (for whatever reason – and it could be a good one, like it will bugger up their systems) then that's tough luck really. If you are a VAT registered business then you claim it back anyhow so no odds except being £20 out of pocket for a few months potentially. Can you order it elsewhere?

    plant
    Free Member

    cynic-al – you would have no fear from me if your customer service is good and the staff that answer the phone can at least give the impression that they care – even if they don't!

    I offered to pay now – I want to pay now – but he said their systems can't do it (It amazes me how many "reasons" are system related (and my industry suffers just as any other).

    I am not VAT registered – this is kit for my hobby. I ordered knowing a 'then price' yet they seems to not want to honour it.

    I could cancel but as I said, I will be back of a long queue with someone else ….

    br
    Free Member

    As its business, vat-in and vat-out.

    plant
    Free Member

    It's not for me, it's just VAT out …… along with everyone else getting in my pocket!

    soobalias
    Free Member

    "i want to pay for it now, to avoid potentially paying more in tax"
    and you think "no you cant complain" is like a red rag to a bull.

    their systems will not be set up for it. The people in the company who can circumvent the stock systems know full well that the accountants will string them up, the auditors too and at the end of the day why should the company pick up the bill – its yours. tough.

    they will honour the price, vat is directed and not under their control

    course if the rules dont apply to you then its totally different, park on the zig zag lines, drive on the cyclepath……..

    plant
    Free Member

    If I were ordering within days of an increase, then I would accept the chances of a VAT increase effecting my bill. I want to pay for it now to pay the tax I was prepared to pay over 6 weeks ago and the rules do allow me to pay for the services in advance of delivery and receive the lower rate.

    On this basis, it is the retailer that is costing me the extra – not HMRC.

    And what's with the sanctimonious bit about zig-zags, cyclepaths etc., …..

Viewing 12 posts - 1 through 12 (of 12 total)

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