VAT !!!

[toyroom]

Am I a sad lonely individual or does anyone else hate the way the motor trade in particular, but some other industries as well, quote prices without VAT ? "That will be £50", they say. You proffer five ten pound notes and then they mutter: "plus the VAT" This absolutely infuriates me. EVERYBODY, BUT EVERYBODY pays VAT, whether they re-claim it or not, so why not quote the price you have to pay instead of a useless figure. The bit that always makes me laugh is the way they have to get a calculator out in order to tell you how much money to give them. This means that every time you ask for the price of something, you have to ask twice. This is totally stupid ! As in: "How much is it", "S how much is it" Why not tell us the proper (and ONLY price you will be paying ?
Imagine a motor trader using a parking meter and it says: "Parking five pounds." He goes and gets change of a tenner. Five coins and a £5 note. Gets back to the meter and puts in the five coins. THEN the machine says: "plus VAT" sweet revenge !
The same guy...oh I could go on forever. It is almost Pythonesque ! You Know, a sketch where one character says :"How old are you ?" The other says "35" and watches the first guy write 35 down in ink on an official form, before saying: "next December" !GRRRRRRRR !

[2 sMoKiN bArReLs]

Don't go to Florida for your holidays.

[ErnestM]

Don't ever go shopping in the States.

"So that's $ 9.99 right?"

"Yes. Plus tax.*"


ErnestM

*- which can vary from State to State and even county to county within a State

[2 sMoKiN bArReLs]

In my experience most car dealers talk VAT inclusive, whilst most commercial dealers talk exclusive. Most commercials are of course B2B, where ex vat conversations are the norm.

[toyroom]

I am 44. I have absolutely definitely NEVER EVER, not one single time found a dealer in the motor trade who did not do this INFURIATING and timewasting practice of quoting the price without VAT !!!!

[snuffy]

Yep, the States and Canada will drive you mad. It's as if they are saying "look, it's not our fault you have to pay sales tax, blame the government". I'm waiting for it to take off here.

[2 sMoKiN bArReLs]

toyroom said:

I am 44. I have absolutely definitely NEVER EVER, not one single time found a dealer in the motor trade who did not do this INFURIATING and timewasting practice of quoting the price without VAT !!!!

Bad luck.

[2 sMoKiN bArReLs]

The other thing which strikes you at first as being odd, but the more you think of it isn't: shops sell stamps in the USA for more than the cost of the stamp (i.e. their margin)

[Dodgey_Rog]

If you serve 'Retail' you are required to quote them VAT inclusive prices, only VAT qualifying business' get the +VAT price. I think i read somewhere that someone challenged an establishment that quoted a +VAT price without stating it +VAT and they had to swollow to the difference. All the companies i've ever worked in, we've been explicitly told, always give Retail customers inclusive VAT prices as they are not to know the implications. Only when they say, i'm VAT registered etc etc can you quote them the VAT Exclusive price.

So there.

[toyroom]

Well somebody better tell the motor trade because I stand by my comment above. Unless something has changed in the last two weekls I have NEVER NEVER NEVER been quoted an inclusive price. Far too many nevers for it to be bad luck ! I think these guys were still in nappies when they uttered their first words: "...plus the VAT"!
Apart from the infuriating fact that this is only a ploy to make things look cheaper (and don't say it isn't, 'cause it is !), the thing that really gets me about it is that even if you can claim the VAT back, you still have to pay it up front so you are going to need to know the inclusive price anyway.

So are you saying that next time I get a price quoted without VAT, I can force the dealer to accept that price ? Nothing would give me greater satisfaction !

[2 sMoKiN bArReLs]

Three cars serviced in last couple of months: Audi & VW both quoted all prices inclusive (including extra works), TVR exclusive.

Pretty unscientific I know, but that's my recent experience.

I know any dealership using ADP Modems quotes inclusive, as I spent several years making it the opposite for a truck dealership!

[Dodgey_Rog]

toyroom said:

Well somebody better tell the motor trade because I stand by my comment above. Unless something has changed in the last two weekls I have NEVER NEVER NEVER been quoted an inclusive price. Far too many nevers for it to be bad luck ! I think these guys were still in nappies when they uttered their first words: "...plus the VAT"! Apart from the infuriating fact that this is only a ploy to make things look cheaper (and don't say it isn't, 'cause it is !), the thing that really gets me about it is that even if you can claim the VAT back, you still have to pay it up front so you are going to need to know the inclusive price anyway. So are you saying that next time I get a price quoted without VAT, I can force the dealer to accept that price ? Nothing would give me greater satisfaction !

Personally, i got tired of seeing customers get the ranging arse when their service bills came to more than they were quoted, it was then pointed out that all retail customers should be quoted VAT inclusive prices. Personally, i've never quoted a retail customer plus VAT, as i worked for a family business and the old man would have kicked me around the showrom if i had f**ked up, harsh, but fair. Challenge away my friend, they quote you a price, they have to stick to it, or whats the point of quoting a price in the first place? Seek professional advice if you're not sure.

[toyroom]

Well, I am on the phone to a dealer right now and he is quoting away "plus VAT" prices. I remain to be convinced !!!!!

[marco247]

Nothing to do with cars but a lot to do with vat.I run a company that has two websites selling identical products to the general public,one site is vat inclusive (shows no vat what so ever just a buy now price) and the other shows exclusive and inclusive (so shows both)which one sells the most? The one that shows both by about 70%!
Nobody though likes seeing vat so whys that?
Is that oil filter at £9.99 plus vat seen as cheaper than £11.74 to the general public?
We all know vats there and its us vat registered individuals that are basically collectors of tax for HM Customs and Excise...yes we do "claim it back" a better phrase perhaps would be,"its taken off our vat bill"
So in short,vat registered individuals pay vat out on items we buy(like everyone)...charge it out on items we sell(unlike everyone else) and low and behold we pay it out on our profit(at which point do we claim it back?)..this is direct to HM Customs and Excise every three months...should anyone wish to pay this on my behalf then please forward cheques too...

[cnjohnson]

Ok can someone tell me what it means when you see a used car for sale (lets say it's prestige german and about 3 months old) and the advert states it is a VAT qualifying vehicle?

[2 sMoKiN bArReLs]

cnjohnson said:

Ok can someone tell me what it means when you see a used car for sale (lets say it's prestige german and about 3 months old) and the advert states it is a VAT qualifying vehicle?

Ex lease vexhicle where the original owner (lessor) has applied business use only, and therefore claimed back the VAT.

[2 sMoKiN bArReLs]

The lessee will have claimed back 50% vat on the rentals.

.....and now I forget how it affects the sales price (does the dealer have to remit VAT on the profit?)

[bojangles]

It is totally infuriating here in Canada with the taxes. Everything is advertised with $$xx.99 then you have to pay two taxes, federal of 7% and provincial of 8% ( where I am ) for a total of 15% .. this is even sillier in Quebec where you have to pay provincial tax on TOP of the Federal tax for a total of 15.56% - That really screws up the prices.

Even restaurants are the same.. they have a big banner advertising lunch special of $9.99 then you have to add 15% tax, and 15% tip and you really dont get out the door with much change from 15 dollars. So what is the point of advertising $9.99? They are afraid to say 10 dollars in case they scare away customers .. but they make you pay at least 13..

Keep in mind here in Canada we have high income tax... what people dont realise is that as long as we spend ALL our money ( most people do ) then you have to pay 15% on every penny....

Cars are bought with after tax dollars... so every new car sold the government gets 30 percent of the price ON TOP Of the sales price. ( to buy a $10 000 car you have to earn $13 000) then they tax it at 15 %
so that is another $ 1 500 Then if that car is sold 4 times in its life the government gets 15% each time ..

Now think that the avearge price of a new car is $30 000, over the life of the car the Goverment gets way more than half its price in tax.
So as the production line rolls along, pumping out cars every minute ... and the car company struggles to make a couple of percent profit... --- THE GOVERNMENT GETS $15 000 with each car!

SO now do you think that the goverment supports the automotive industry? Do you think the safety checks and pollution tests are there to help us or to promote more new car sales??????

Bruce