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VAT act question

cant find the blooming reference for vat inclusive pricing

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Which section number concerns pricing being VAT inclusive?

I havea client with a silent contract, the supplier wants to start charging VAT on an ongoing supply (and change the past).  I am sure it says in the VAT act somewhere that prices are inc VAT unless otherwise stated and would like to go back with something fairly concrete. 

Can I find it? No. 

Can you?  Of course you can!

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By Matrix
14th Jan 2019 19:16

I expect you would need to check the contract which would say if the charges are VAT inclusive or exclusive (sorry I see this is silent on the issue).

s19(2) of the act gives the definition of consideration.

Thanks (1)
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14th Jan 2019 19:10

VATA 1994, s.19 (2)

What do you think?

Thanks (1)
14th Jan 2019 19:55

Thanks for both of you, much appreciated.

You have both plumped for s.19(2)

That is not quite the golden ticket, but if that is it I will have to work with it!

Thanks (0)
By mrme89
to ireallyshouldknowthisbut
15th Jan 2019 10:21

Close but not quite there!

Any price that is stated in an agreement is the 'consideration'. If the agreement has no mention of VAT, then the consideration is deemed to be inclusive of VAT. See s19 (3).

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15th Jan 2019 09:53

Is the contract with a consumer or with a trade customer? My understanding is that consumer contracts are deemed to be VAT inclusive, whilst trade are exclusive, subject to what the contract says.

Consumer Rights Act and Consumer Contracts (Information , Cancellation and additional Charges) Regulations 2013 Sch 2(f) require quoting prices inc of VAT.

Full caveat here as I am not a VAT specialist.

Thanks (1)
to Jane Evans
15th Jan 2019 16:33

Thanks Jane, its a commercial contract, not a consumer one.

I have come across a good case which I think shows its still gross.

*which I have snipped as I am going to use it with the end client and don't want them stumbling on this thread!*

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to Jane Evans
15th Jan 2019 18:02

Jane Evans wrote:

Is the contract with a consumer or with a trade customer? My understanding is that consumer contracts are deemed to be VAT inclusive, whilst trade are exclusive, subject to what the contract says.

Consumer Rights Act and Consumer Contracts (Information , Cancellation and additional Charges) Regulations 2013 Sch 2(f) require quoting prices inc of VAT.

Full caveat here as I am not a VAT specialist.

It's always including VAT - unless the contract states otherwise. Which it usually does, in case the rate changes.

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