VAT issue

[ratboy]

Many larger companies will presume everyone is VAT registered. Many firms quote exclusively less vat every day of the week - presume this was the same.

It's pants, but that's life. I've had exactly the same thing happen - however I am VAT registered.

 

[TinkyWinky]

Hi Ben

As far as I have been led to believe if they invoiced correctly (ie. the invoice has clearly laid out Gross Net and VAT , plus correct company numbers etc.) then you will liable to pay it whether you agreed a lower price or not.

Why?

Your argument about a "verbal agreement" I think could be challenged as you have received an invoice that is your responsibility / due diligence to check that it is correct.

I think also the act of your payment could be used as an argument that you accepted the invoice by making the payment, albeit you only sent a part payment therefore and owe the rest.

I comnpletely know where you are coming from on the point of principle here - but for the sake of £40 is it worth all your time and effort?

Sorry not better news

TW

(p.s. this cannot be counted as legal advice as I ain't no lawyer or accountant )

 

[cm1975]

Slightly different scenario, but what would happen if a company invoiced you for £100, rather than £1000, as a result of a typo?

Would they have to supply the goods at the lower price? ie. How valid is the invoice as legally binding document?

 

[Pred]

Slightly different scenario, but what would happen if a company invoiced you for £100, rather than £1000, as a result of a typo?

Would they have to supply the goods at the lower price? ie. How valid is the invoice as legally binding document?

would imagine would depend on the comms beforehand

 

[woopwoop]

Legally speaking there has to be a 'meeting of the minds' for any agreement/contract to stand.

In this case that didn't happen.
They thought one thing was happening, you thought something different. I tend more towards thinking they should have been clear about VAT from the start, but it doesn't matter what I think, you didn't have this meeting of the minds.

In cases like this, you have the option to 'undo' the deal, talk to them about getting your money back and transferring the domain back, or to renegotiate (perhaps splitting the VAT). Really they don't have to and neither do you, so think about how much you want the domain and how much more do you want to pay for the domain and to avoid wasting time).

 

[anthony]

They issued a vat invoice, you should have noticed that. If you dont pay it, they start off a moneyclaim action at very little cost to them. They'll say that as you had paid a substantial part of the bill, the domain was released as an act of good faith.

From what I can remember, you could register for vat today and claim back the vat paid up to 3 months ago if its for business use anyway, seems the best all round solution to me.

 

[peter_w]

From what I can remember, you could register for vat today and claim back the vat paid up to 3 months ago if its for business use anyway, seems the best all round solution to me.

Surely if he registered for VAT, he would then need to start charging it. Which may not be in his best interests, depending on the nature and volume of his business activity.

 

[Edwin]

Surely if he registered for VAT, he would then need to start charging it. Which may not be in his best interests, depending on the nature and volume of his business activity.

Not to mention that it makes accounting more complicated and therefore more expensive.

 

[Bailey]

Just to complicate matters

Lets not forget under the 'Law of Contract' it is the buyer that sets and agrees the price. The sales price advertised by a seller is purely an indication of an amount that he wishes the purchaser to offer and has no legal standing in any transaction.

This applies to all sales and purchases, including any in your local Supermarket/car dealership/petrol station etc etc. however taking possession indicates acceptance by both parties that the "indicated" price has been agreed as the purchasers offer