Understanding VAT and pricing on supplier's websites

[Colin Lindsay]

Morning all!

I'm trying to take advantage of Rimmers' Christmas Sale but have backed away twice now over confusion with the VAT and sale prices.

The catalogue list three prices: UK including VAT, Rest of world Excluding VAT, and UK Sale price including VAT.

I'm trying to buy two items which are listed as follows:

1.Normal price (inc UK VAT): £252.00, ROW sale price (excluding UK VAT): £172.50, UK Sale price (including UK VAT) £207.00

2. Normal price (inc UK VAT): £29.10, ROW sale price (excluding UK VAT): £19.75, UK Sale price (including UK VAT) £23.70.

SO: if I add the two sale prices it should come to £230.70 which is inclusive of UK VAT, otherwise it would be £192.25 with the VAT to be added on.

However if I go to the 'cart' it lists as follows:

Subtotal £234.25, shipping charge £7.95, VAT £48.44 a total of £290.64.

Full price would be £289.05  so it appears that by buying 'sale' items I'm paying more than the normal price. This is with the current offer code applied.

Am I missing something here? Am I being charged twice for VAT?

 

[Clive]

I think you need to call them and ask? 

Typical website issue I expect. A cockup.

[NonMember]

13 minutes ago, Colin Lindsay said:

Full price would be £289.05 

I think you've forgotten to add VAT to the delivery charge. The web site is calculating the full normal price without discount.

[thescrapman]

Make sure you go via the link in the email advertising the sale, it  stores a cookie or something that adds the relevan t discount, took me ages to work out why I kept getting expensive totals in the last sale,

[poppyman]

Hi  Colin, they have added vat to the delivery charge as well. Very unethical and one of the reasons i avoid Rimmers if i can. I know you have had problems with shipping to Ireland? But if you have a postcode?? It should not matter as RM will deliver at a standard UK price.

Tony.

[JohnD]

Unethical?  VAT is due on delivery charges for VAT liable goods, unless sent via the Post Office.  See https://www.gov.uk/guidance/vat-on-postage-delivery-and-direct-marketing-notice-70024

[poppyman]

I understand that John...... But why not tell people before hand. If you buy off Ebay the postage listed is the price you pay no matter how it's sent!!  That is why i think it is unethical. If you went to a petrol station and filled up, and then they charged you for the pump filling the car without telling you/ You would be a bit miffed.

Tony.

[johny]

I think Rimmers and many others do the VAT thing because there are businesses (restorers and workshops) who buy parts (and consequently transportation) without it added. They do show prices with and without VAT but the postage always has to have it added on afterwards. Ebay doesnt need to do this as the vast majority of its customers are private individuals.....

[ShaunW]

On 06/12/2018 at 12:51, poppyman said:

But if you have a postcode?? It should not matter as RM will deliver at a standard UK price.

Tony.

RM might charge the same price but certain postal regions have more issues with missing, delayed or damaged items. Firms 'insure' themselves by charging a bit more. 

Imaging what a mare delivery, import duties and customs delays will be once we've left the customs union! And that's as individuals let alone as part of a supply chain. 

[Colin Lindsay]

In any case I didn't complete the order, so will have cost myself a few pounds more whenever I do go to order one... (in case you're wondering it was a tan hood bag for a TR7...)

[Guest]

Hello Colin,

If you are a VAT registered company, you must by law charge VAT on postage as they are providing a service which has a VAT liability.

As mentioned, Royal Mail / Post Office cannot charge VAT as you are in effect purchasing stamps.

Clive's suggestion of phoning direct is the best option and explain you dilemma, they will charge you the price you anticipated PLUS VAT on the postage.

Hope that assists ??

Regards.

Richard. 

[poppyman]

Hi Richard, funnily enough the post office do charge vat.... but only on certain types of delivery, usually the very fast ones to be delivered on a certain day. Why... I dont know.  It can be checked on their website.

Tony.

[Guest]

Hello Tony,

Indeed.

That is because they are supplying an additional service outside their normal remit and therefore entitled to charge VAT - in essence they are then a courier which is liable to VAT.

Good point well made and I should have covered that.

Not sure that will help Colin though 😉 !!

Regards.

Richard.

[poppyman]

Colin seems get all the cr*p with deliveries   Must be with living in a foriegn land??

Tony.

[Colin Lindsay]

None foreigner... if that's the Queen's English. We do our best but you guys keep trying to get rid of us!