quick question on VAT

Hi and welcome. Unfortunately, I think they can do what they like. I'm sure somebody will be more than happy to correct me if I'm wrong, but if somebody offers to keep the price the same for you, they are doing you a favour and usually do it just to ensure your business. Our venue has said that if we pay the deposit for (2014) then they will honour this years prices, but our church and some transport quotes have given us a rough estimate of what it will cost in 2 years, but they will have to wait and see what happens to inflation etc. There's no harm in asking if they can honour the VAT, but I'm pretty sure it's up to them. Obv if you had paid the full amount then they can't juts charge you more, but I don't think there's anything legally wrong with changing the VAT on the balance, as harsh and mean as it is. If you have an invoice of some sort with specific amounts and shows VAT at 15% then I would def fight it. Hopefully someone on here has more lawyery experience than me and can be a bit more certain. Hope you get it sorted x

It all depends on what your contract says.

Ours stated that the package would remain at the price when booking and that VAT would be charged at the prevailing rate (whatever % it was at the time of invoice not time of booking).

If a supplier honours an old VAT level, they have to take a hit themselves (unless fully paid before the increase.)

Don't quote me but I think it depends when they invoiced you, if it was back then it would be fifteen and if it's now then te current rate. I think!

It was a while ago but I seem o remember that's how we had o deal with it.

I'm with BatsGirl, at work when we invoice it is at the rate that the invoice was raised, so if it is only an estiamte that you have then you will be charged at the 20% rate. Remember this is not the venue it is the government it is a tax from them. As Peter said if they do honor it they will lose out.

The venue will have to pay vat based on the date that you pay the invoice, so I guess any venue that guaranteed it at 15% would actually be giving a 5% discount. I guess that it depends then if they can afford to lose that money, so is it good value for money without the discount and if you pushed them for it would they have to cut the cost back somewhere else to recover that loss?

This is a bit alien to me as everyone has fixed the price for us apart from if there is a VAT rise and we'd have to pay the difference!

You pay VAT at the rate it is when the invoice is raised, so 20% if its now. Any suppliers that are honouring 15% are doing so at the goodness of their hearts and effectively taking a 5% hit.

Well thank you all for your comments and thoughts on this. I am going to quiz them on it again and see if I can get a little discount. As for is it good value for money... I couldnt tell you as I dont remember what the 2010 prices were and Im not sure of what other venues were charging. seems like money was at the back of my mrs mind when looking at venues. Just seems a little weird and if they'd put their prices up 20-30% we would have 2 choices. pay for it or lose deposit?. Thanks again. Dale

But it wasn't their choice to put VAT up it was the governments decision, which all VAT registered businesses have to comply with

Yes I understand that vat has gone up and its a govenrment thing.. but they have had money off us to book the place, £2000, and have had this for about 2 years. other wedding item providers gave us flat prices at the start. they havent been able to give us price per head untill 2 weeks ago and its more than I thought it would be. im also saying that their prices from 2010 have increased and we have to pay this increase too or cancel and lose deposit/booking 2k. if they had put their prices up by and extra 10% we would be well in the poo.

But so would they. They can't avoid paying VAT rise so unless you made the decision to fix the price (barring vat) in 2010 i can't understand why you think that they should absorb the extra 2.5-5% (depending on when you booked)

Of course everything is worth a try but I don't think you can expect them to roll over on something that is out of their control.

They can only charge you the extra on anything outstanding.

So, 5k venue which already has a 1k deposit before the increase should only be increasing on the 4k remaining.

This is common I'm afraid.

Most venues put their prices up each year and will charge VAT at the prevailing rate when invoicing.

Yes, this is true. You've already paid £2000. I presume you paid this when VAT was a 15%?

If so, and I think I'm right here, the overall venue price should be venue price + VAT @ 20% minus £100.

Hi Wattsy82

The VAT rate will be 20%, BUT the venue dont actual;y end up paying all this to the government. It is offset by either Input VAT, or if you are dealing with a small supplier ( VAT taxable turnover less than 150k, or until reach 230k) who would find VAT calculation to costly and time consuming then they would have Flat rate so Catering services charged out at 20% but only pay the government 12.5%.

If not wortwhile pointing out that paying higher VAT on which to offset. Also on a £10k wedding the difference in VAT is £500, so if they wont budge ask for some extras

Good Luck!