If I pay by credit card, can the company charge VAT on top of these charges?

8 replies
Found 12th Jun
If I pay by credit card, can the company charge VAT on top of these charges? I have purchased some windows and have made the payment on my credit card for payment protection. The company said they charge 3% on all invoices if payment is made via credit card, but I have noticed that they have then added a further 20% on these charges. It this the norm?


fees for credit card payments are vatable.

I assume you've paid by credit card to get protection under s75 Consumer Credit Act rather than any PPI sort of protection. Bear in mind that you only need to have paid part on your credit card to get the full protection (check the full explanation on MSE). £100 would be enough.

3% credit card surcharge is high - merchant fees average about half of this. As for VAT on top... the regulations are pretty complex (financial services are exempt but the seller of the windows is not providing a financial service), but the short answer is that VAT is due on the surcharge.

If they are dealing with the general public they must show the price including VAT, they aren't allowed to give you a price +VAT.

is the 20% fee only on the 3% surcharge?

If they quote it as 3% charge plus vat, then you can't do sheeeet

The price you should be paying is the price you have agreed including vat and another 3% to cover the credit card charge. If they have charged you 20% on top of the price you agreed for the windows, then the price you agreed must have been excluding vat. hope that makes sense.

Glad you appreciated the responses, Dundawala.

Original Poster


Glad you appreciated the responses, Dundawala.

Post a comment
    Top Discussions
    1. Topcashback Trick or Treat competition63691
    2. Win an unbelievable Windows Mixed Reality prize pack from Windows Central! …22
    3. Win two star gazing festival tickets in the north pennines43
    4. Win a £100 Amazon Voucher From LoveMyVouchers44

    See more discussions