VAT

[fred22]

Hi

Any VAT experts out there?

 

I have just had my vehicle serviced and it needed an expensive part replacing.

My garage were able to find a second hand part advertised on the net at £105, this included vat.

My garage has now billed me for £105 +vat= £126

Is this correct?. I appear to be paying two lots of VAT

I could have purchased them my self for £105 and then asked the garage to fit them( which they have done before)

As I see it, the correct procedure should be that the garage should show this item in their

books as a purchase at £87.50 with vat at £17.50, they could then claim the £17.50 back in their vat return.

On my bill they should charge me £87.50 for the parts and then add £17.50 for vat. I will then be paying the same as the items were advertised and purchased for???

The Inland Revenue get 20% and every one is happy.

The company selling the parts is VAT registered

Am I being too simple

Fred

[Shrek Feet]

I'm no expert but it seems to depends on whether a garage is VAT registered or not - as your garage is VAT registered they SHOULD NOT be paying VAT on the parts and therefore you should just be paying for the gross cost of the parts plus VAT, not VAT on VAT. However, it may be that they are doing it to make a 'mark-up' on the item for the 'service' they have provided.

 

The last post in this thread explains it.

 

http://forums.moneysavingexpert.com/showthread.php?t=3206250

 

And this gives comments about the mark-up which they appear to have added.

 

http://www.pistonheads.com/gassing/topic.asp?t=766661

 

I would be extremely annoyed if they had 'offered' to get the part for you, rather than you getting it, as it would appear to have cost you the extra so called 'VAT' on the part to line their own pockets. :-S

[colin]

VAT is as it's name says a Value Added Tax, if the company sold it to you at cost they are adding no value so no extra tax to be paid, if on otherhand they are adding a charge for spending time finding the part on net and then handling of part they are adding value. The question is, how much time did they spend finding the part and time ordering etc. when they could have charged you for a new part.

[Dave Newell]

You have not paid VAT twice. The garage have bought the part in and added a 20% mark up on the ex VAT price, they have then aded 20% VAT to this new figure which is quite correct. Its called profit and is what the garage is there to do. Profit is not a dirty word!

 

D.

[Mel B]

Profit is not a dirty word Dave, you are correct, without profit no one would be able to survive - if businesses didn't make a profit then they wouldn't exist ... no supermarkets, no motorhome sales, no campsites, no magazines ... no forum! 8-)

 

It really comes down to whether the garage made it clear than they would source the part (ie give the service to the customer) for free or not ...

[fred22]

Hi

Yes you are right Mel, I was going to order the parts myself and then take them to the garage for fitting

but the garage suggested they ordered them on my behalf and have them delivered direct to them to speed things up.

But, good result, I have been to the garage today and the lady who makes out the bills apologised to me as she had not been made aware that the price shown for the parts already included VAT.

She amended the bill and I am happy with the outcome.

I thought it must be a genuine mistake I have been dealing with this garage for nearly 30 years and this is the first time I have had to query anything.

Thanks to you all who had an input to my enquiry .

Fred