Can a Company Give You Returns Amount without VAT?

27
Posted 10th JunEdited by:"noddle36"
I have never had this experience before but can a company give you returns amount without VAT when returned within 14 days from UK? They call it restocking fee.

So costs example £100 (that's inc VAT) but when returned only able to claim £83.33 ex VAT returned? So a loss of £16.66 (20% VAT) just for returning items if you change your mind.

Thanks
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Thats not keeping the VAT - they've simply added on a restocking fee which some retailers do say they do, especially if outside of return windows either.

If it was keeping the VAT you'd have got £83.33 back.... (£83.33 + 20% = £100).
27 Comments
Especially if it's a UK based company, definitely no (unless they've found some sort of legal loophole). Since you are returning the item, the tax paid must be returned as you are not keeping the item.
Edited by: "jamie15" 10th Jun
Thats not keeping the VAT - they've simply added on a restocking fee which some retailers do say they do, especially if outside of return windows either.

If it was keeping the VAT you'd have got £83.33 back.... (£83.33 + 20% = £100).
jamie1510/06/2020 20:49

Especially if it's a UK based company, definitely no (unless they've found …Especially if it's a UK based company, definitely no (unless they've found some sort of legal loophole). Since you are returning the item, the tax paid must be returned as you are not keeping the item.


Thanks, they have it on their forms and call it restocking fee. I bought 75 bricks but they come in packs of over 500.
Did you buy online? Did you return within 14 days of receipt?
Being honest I'm not sure on the legalities of a restocking fee. They are entitled to charge return P&P and only refund you standard P&P to you (even if you used enhanced service).

See: which.co.uk/con…ons

Maybe worth a call to Trading Standards?
markmc99910/06/2020 20:51

Thats not keeping the VAT - they've simply added on a restocking fee which …Thats not keeping the VAT - they've simply added on a restocking fee which some retailers do say they do, especially if outside of return windows either. If it was keeping the VAT you'd have got £83.33 back.... (£83.33 + 20% = £100).


Thanks I might have to consider thinking twice next time I buy but its not as much as I expected as you said the VAT is the 20% of the total cost not inc VAT.
AC-ZEP-GEN-DC10/06/2020 20:59

Did you buy online? Did you return within 14 days of receipt?


No from a loacl landscapping suppliers.
But I had to pay £15 for delivery though and took some of the items back in car.
noddle3610/06/2020 21:06

But I had to pay £15 for delivery though and took some of the items back …But I had to pay £15 for delivery though and took some of the items back in car.


£20 is not the VAT due on £80. The £20 is some other fee, legitimate or not.
Did you buy on premises or off premises?
How many days after receipt of the product did you inform supplier of return / cancellation?
noddle3610/06/2020 20:52

Thanks, they have it on their forms and call it restocking fee. I bought …Thanks, they have it on their forms and call it restocking fee. I bought 75 bricks but they come in packs of over 500.


Restocking fee is different to VAT. Within 14 days then typically consumers are entitled to full refund excluding return postage costs for change of mind. Restocking fees are generally not allowed for consumers, but if this is a business transaction it may be different (not too sure).
AndyRoyd10/06/2020 21:13

£20 is not the VAT due on £80. The £20 is some other fee, legitimate or no …£20 is not the VAT due on £80. The £20 is some other fee, legitimate or not.Did you buy on premises or off premises? How many days after receipt of the product did you inform supplier of return / cancellation?


So the thread poster changes the figures in OP to fudge an amount equivalent to VAT. Nice
AndyRoyd10/06/2020 21:13

£20 is not the VAT due on £80. The £20 is some other fee, legitimate or no …£20 is not the VAT due on £80. The £20 is some other fee, legitimate or not.Did you buy on premises or off premises? How many days after receipt of the product did you inform supplier of return / cancellation?


Sorry got the VAT amount wrong which I have changed (as an example) but I ordered on premises which was ordered on the 19/05 to be delivered on 05/06 at a £15 charge for delivery and I took back today some of the items and they said I am not allowed the VAT back because of restocking charge even though I returned within 7 days.
AndyRoyd10/06/2020 21:22

So the thread poster changes the figures in OP to fudge an amount …So the thread poster changes the figures in OP to fudge an amount equivalent to VAT. Nice


Not use to VAT
noddle3610/06/2020 21:23

Sorry got the VAT amount wrong which I have changed (as an example) but I …Sorry got the VAT amount wrong which I have changed (as an example) but I ordered on premises which was ordered on the 19/05 to be delivered on 05/06 at a £15 charge for delivery and I took back today some of the items and they said I am not allowed the VAT back because of restocking charge even though I returned within 7 days.


No mandatory right of cancellation for an on-premises sale's change of mind return; any return acceptance offered by merchant is gesture of goodwill and subject to whatever return-for-refund terms you agreed at point of sale.
Any restocking fee will not be the actual VAT element of the original purchase, but may be the same value as VAT.
AndyRoyd10/06/2020 21:32

No mandatory right of cancellation for an on-premises sale's change of …No mandatory right of cancellation for an on-premises sale's change of mind return; any return acceptance offered by merchant is gesture of goodwill and subject to whatever return-for-refund terms you agreed at point of sale.Any restocking fee will not be the actual VAT element of the original purchase, but may be the same value as VAT.


So next time if I buy from them again its best to ask before purchase if I can return for a full refund. Thanks
noddle3610/06/2020 21:37

So next time if I buy from them again its best to ask before purchase if I …So next time if I buy from them again its best to ask before purchase if I can return for a full refund. Thanks


Or order over the phone / online to obtain mandatory 14days right to notify cancellation for full refund (buyer pays return shipping).
noddle3610/06/2020 21:37

So next time if I buy from them again its best to ask before purchase if I …So next time if I buy from them again its best to ask before purchase if I can return for a full refund. Thanks



Always best to check their terms and conditions of sale beforehand, especially when purchasing "in person".
Deist_Dean10/06/2020 21:51

Always best to check their terms and conditions of sale beforehand, …Always best to check their terms and conditions of sale beforehand, especially when purchasing "in person".


I agree.
noddle3610/06/2020 21:55

I agree.


T&c are usually stated in miniscule writing on the rear of the wafer-thin invoice spat out at builder's merchants and similar outlets.
noddle3610/06/2020 21:23

I ordered on premises


And thats where they can do what they want I'm afraid.

Online orders get you your 14 days free returns period, in store doesnt.

Note they cannot be not giving you your VAT back - they are basically just setting that percentage as the re-stock fee.

So your refund of £83.33 would actually now be made up of £69.44 goods and £13.89 VAT. Technically unless you are a business charging and reclaiming VAT it is irrelevant, but important to note all the same.
markmc99910/06/2020 22:24

And thats where they can do what they want I'm afraid. Online orders get …And thats where they can do what they want I'm afraid. Online orders get you your 14 days free returns period, in store doesnt. Note they cannot be not giving you your VAT back - they are basically just setting that percentage as the re-stock fee. So your refund of £83.33 would actually now be made up of £69.44 goods and £13.89 VAT. Technically unless you are a business charging and reclaiming VAT it is irrelevant, but important to note all the same.


Not quite as simple as that as OP has paid a delivery fee that would reasonably be 100% forfeited (unretrunable) and not included in any on-premises sale refund.
Next time why not buy what you need instead of assuming you can get the seller to foot the bill for handling your returns because you are unable to add....
markmc99910/06/2020 22:24

And thats where they can do what they want I'm afraid. Online orders get …And thats where they can do what they want I'm afraid. Online orders get you your 14 days free returns period, in store doesnt. Note they cannot be not giving you your VAT back - they are basically just setting that percentage as the re-stock fee. So your refund of £83.33 would actually now be made up of £69.44 goods and £13.89 VAT. Technically unless you are a business charging and reclaiming VAT it is irrelevant, but important to note all the same.


That's probably why they don't offer online orders and when the delivery came it said the same at the bottom of the invoice from the store stating:

"Any items returned to stock may be subject to a re-stocking charge of 20% a collection charge also apply"

Which I cant find online but I don't like giving card details over the phone and I would have to collect rather than paying £15 for delivery.
A retailer has no obligation to accept back an item you bought in their shop unless you're returning it due to a fault or incorrect description of item. Many shops do offer a no hassle returns policy within 30 days but that's completely at their discretion and there's no legal requirement to do so. They have every right to charge for restocking as long as their terms and conditions are stated, the items need checking back in, making sure they're fit to sell as new to another customer etc.

Online sales have that 14 day cooling off period.
Edited by: "spannerzone" 10th Jun
If they have refunded £83.33 I dont actually think you've done badly here if I'm honest because, as @AndyRoyd said the delivery fee would be forfeited (and that wasnt something I took into account on my sums).
rik11110/06/2020 22:39

Next time why not buy what you need instead of assuming you can get the …Next time why not buy what you need instead of assuming you can get the seller to foot the bill for handling your returns because you are unable to add....


I returned and placed back myself without any help but was charged to be delivered with other items. But changed my mind when I placed the bricks next to my origanal ones.

Everybody makes mistakes.
Edited by: "noddle36" 10th Jun
rik11110/06/2020 22:39

Next time why not buy what you need instead of assuming you can get the …Next time why not buy what you need instead of assuming you can get the seller to foot the bill for handling your returns because you are unable to add....


I tend to agree with your general viewpoint but why you feel the need to include the final part (that is simply rude) is beyond me.
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