BUYING DOOR THRU BUILDER/FITTER SAVES VAT -TRUE/FALSE?

[cherryblossom]

I wish to buy a REPLACEMENT door for my existing house. This replacement is not a new build, extension or conversion; just an improvement to what's already there. I have been informed by a supplier that I can make a saving on the VAT element if I purchase my door through a building company or fitter as he will be able to reclaim the VAT and pass on that saving. Is this correct? Can builders, fitters or any knowledgable folk out there enlighten me please? The supplier is aware that I am only geting a replacement for my 25 year old house. I need an answer soon. Thanks

 

[The-brickie]

A small builder or supplier, like myself, would not be registered for VAT and there for not charge it on top of quoted price.

My front doors are £230 all in, others may say £210 + vat (£246.75) so you lose out by £16.75 (Only a example)

 

[cherryblossom]

In my example, the saving would be substantial as the cost of the frame, the bespoke wooden door and sidelights, furniture etc amount to a couple of thousand pounds. Is it usual for the builders/fitters to not charge the customers VAT because they would not have to pay it or something? The VAT alone would save me a few hundred pounds. I am still

The-brickie, thanks for your reply. Anyone else, please?

 

[JohnD]

I think you have been misinformed.

If the fitter was VAT registered, he would buy the door at (say) £100 plus £17.50 VAT.

He would charge you (say) £300 plus £52.50 VAT to cover materials and labour.

He has already paid £17.50 VAT so he would have to pay the remaining £35 on his own VAT return.

So no saving for you.

Alternatively, if you bough the door yourself for £117.50 including VAT, and he was VAT registered, and charged you £200 plus £35 VAT to fit it, you would pay the same.

However, if you used a non-VAT registered tradesman, and he charged you £200 to fit it, he would not be entitled to charge you VAT on his labour, so you would not pay him the extra £35, and he would not include it in his VAT payments. So you would be £35 better off. But you would not avoid VAT on the materials either way.


p.s. it is possible for builders, or anyone else, to fraudulently evade paying tax, for a period until they get caught and go to prison. Usually they only do this when they can pocket the tax due themselves, not when they give it away to customers in reduced prices.

 

[cherryblossom]

Thanks JohnD for your reply.

What you have stated is what I had always believed the impact the VAT has on the customer to be. However, what is baffling is that the supplier insists that it is possible to make this saving on condition I find myself a VAT registered fitter/company/builder through whom I should purchase and fit this door. Apparently, he is able to reclaim VAT. I don't know all the ins and outs of VAT legislation. Is there a loophole or something? Any thoughts on this, JohnD or anyone else?

 

[JohnD]

Explanation: The supplier doesn't know what he's talking about.


This is not uncommon.

A VAT registered install can "reclaim" the VAT as part of his Input, but has to charge VAT on his output. Unless he sells things for less than they cost him, he will have to charge more tax than he pays.

 

[breezer]

agree with JohnD

you are being led up the garden path.

why should some one paying vat, then claim it back give you anything off?

anyone who says otherwise is in some way conning you, for example they may say z +vat and shush and its just z, how do you know they are vat registered?, since cash in hand means just that and no (vat) receipt if a recipt at all

 

[Mw Roofline]

agree with JohnD

you are being led up the garden path.

why should some one paying vat, then claim it back give you anything off?

anyone who says otherwise is in some way conning you, for example they may say z +vat and shush and its just z, how do you know they are vat registered?, since cash in hand means just that and no (vat) receipt if a recipt at all

Agreed. Ditch this stupid 'supplier' and find a decent company to do it for you.

 

[The-brickie]

Me me!

My doors are inclusive of VAT so no nasty supprises.

 

[cherryblossom]

Thanks for the replies.

I have told the supplier that I am not going to make any such VAT saving. Their reply was that it all depended on the fitter I used.

I have left it at that anyway.