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!
Replies (7)
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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.
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).
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.
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.