Why do we get quoted a price, "PLUS VAT"?

17
Posted 3rd Aug
Consistently throughout the motor trade, they are quoting £XXX + VAT for some work to be done. Other trades do it too; recently had some Conservatory roof quotes, PLUS VAT.

I have to ask every time, is that the final, total price? What is the final price I am paying, does that include the VAT?

Why is it so hard to give a bloody total price?
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Kratos6903/08/2020 11:48

Because £100 plus VAT looks better than £117.50



it's been a long time since VAT was at 17.5%
VAT is 20%, so £120
Kratos6903/08/2020 11:48

Because £100 plus VAT looks better than £117.50


What decade are you in?
It’s been 20% since 2011
17 Comments
Agreed! Bloody annoying.

I dont really get it either as it seems that Tax is passed down to the consumer rather than the company. Given that VAT is required for companies who earn £80k+ a year I think, surely a sole trader who doesnt earn than much can simply offer a better price based on tax savings?
I asked a garage this recently. He told me it's because some companies (their work vehicles) can have the VAT written off as an expense.
worton03/08/2020 10:26

Agreed! Bloody annoying.I dont really get it either as it seems that Tax …Agreed! Bloody annoying.I dont really get it either as it seems that Tax is passed down to the consumer rather than the company. Given that VAT is required for companies who earn £80k+ a year I think, surely a sole trader who doesnt earn than much can simply offer a better price based on tax savings?


VAT is always passed down to the consumer. It’s a consumer tax.

It can make their prices look a bit better psychologically. (It would have only cost this much if it wasn’t for the horrible VAT).

It is annoying though when companies that are servicing the consumer market directly insist on doing this.
Because £100 plus VAT looks better than £117.50
Kratos6903/08/2020 11:48

Because £100 plus VAT looks better than £117.50



it's been a long time since VAT was at 17.5%
VAT is 20%, so £120
Kratos6903/08/2020 11:48

Because £100 plus VAT looks better than £117.50


What decade are you in?
It’s been 20% since 2011
smith2001uk03/08/2020 10:57

I asked a garage this recently. He told me it's because some companies …I asked a garage this recently. He told me it's because some companies (their work vehicles) can have the VAT written off as an expense.


This is the reason, although VAT isn't written off its reclaimed so they in effect don't pay it.
It’s an entirely pointless endeavour unless you’re explicitly selling business to business. I’ve been Quoted wedding venue prices excluding VAT - as if i’m a business likely to claim it back! Far too often it’s used as a way to make things look cheaper. My least favourite was a solicitor final fee agreed upon in advance that didn’t include VAT until we came to pay. Sneaky!
It annoys me when discount store JTF show prices without VAT.
Prices should include vat, full stop
Costco do it. I know a lot of shop keepers go there but it’s still annoying.
Depending on the trade some do it as a negotiation point, offer to split the difference for cash
I can add 20%. I did maths at school.
joedastudd03/08/2020 12:06

This is the reason, although VAT isn't written off its reclaimed so they …This is the reason, although VAT isn't written off its reclaimed so they in effect don't pay it.


It just shows how little people understand.
Edited by: "joyf4536" 3rd Aug
sicklysweet03/08/2020 11:51

What decade are you in? It’s been 20% since 2011


Yeh we're still in a "temporary VAT increase" - though i'm not holding my breath of ever seeing a permenant 17.5% again. I hate that pig faced politician that increased VAT
dale.harperEGV03/08/2020 18:58

It annoys me when discount store JTF show prices without VAT.


That caught me out the first time i went to JTF. After adding VAT, it isnt any cheaper than other outlets
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