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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15977
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am a builder, I sent a quote to somebody with an amount on,

Customer Question

I am a builder, I sent a quote to somebody with an amount on, however, this didn't include vat, my vat number was visible on the letterhead though, now I have to bill them the amount stated + vat, where do I stand if they say they thought it was included or they didn't realise I was vat registered?
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.

I'm afraid that you may be in difficulty if the customer picks you up on the fact that, whilst your quote had your VAT registration number on it, it wasn't made crystal clear that the price was exclusive or inclusive of VAT. They may quote Section 20 of the Consumer Protection Act 1987 which you can find here and refuse to pay the VAT you include on the invoice. You might consult a commercial solicitor if that happens to assess your chances of winning in court but Section 20 is pretty tough on businesses.

If the customer is a VAT registered business, it may make no difference to them as they can claim the VAT back if they are not on the flat rate scheme.

I realise this isn't good news. Let me know if you hjave any further questions.
Expert:  TonyTax replied 3 years ago.
Hi again.

It's been a few days since I answered your question. Is there anything you need further clarification on?