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I want to make a purchase - the seller won’t drop the vat even though it’s a self build . They will offer a 15% trade discount if bought via a company account - which I don’t have .

What difference does it make to the seller ? I.e sell to trade 15% discount or sell to me 15% discount . Price would be the same ; what’s the benefit to the seller ?

Naturally I want 15% discount even including Vat .

 

cheers 

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42 minutes ago, pocster said:

I want to make a purchase - the seller won’t drop the vat even though it’s a self build


Doesn't have to unless he is doing full supply and fix and it’s part of the allowable list of items. 

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Just now, PeterW said:


Doesn't have to unless he is doing full supply and fix and it’s part of the allowable list of items. 

Oh I know that . Some suppliers do some don’t . It really was about discount to trade and not to me .

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13 minutes ago, PeterW said:

Depends what they term “trade” and the rules for their accounts. 

Sure . But what difference does it make selling a £1000 item with 15% discount to “trade” and selling it to me ? . The seller gets the same amount regardless don’t they ?

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Trade discounts are usually used to lure you away from another supplier. For example, Howdens offered to beat TP last month on some doors over and above their “standard” discount.  This is because they are nearly next door and know who buys where ....!

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2 minutes ago, pocster said:

Yeah so it’s really a bulk discount or frequent buyer discount.

 

Yes, that’s what trade accounts generally are. People who buy in bulk and then sell on to customers, not Johnny New Build who is buying for himself. It’s a way to retain their loyalty by giving up a little of their profit. You won’t be a repeat customer so they’re not bothered about dropping the price for you, although some will if they want a sale. It’s also nowt to do with VAT as they have to include VAT to trades buying over the trade counter too. 

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Just create a trade account. You don't need a company - many "trade" accounts are for sole-traders with no ltd co. I have a couple I setup as "AS Developments", any credit check they may run will be against you. It's just smoke and mirrors but works. Though in this case maybe that horse has left the (tool) station ?

 

I know mixed metaphors and bad joke all in one 

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Often when selling stuff to the trade they will alter the terms of the sales. In exchange for discounts / credit accounts they will offer a shorter amount of time to return a item and returns can incur a restocking fee. I would imagine that some trades are less picky about the item they receive and less likely to return stuff. 

 

Not helpful info.......but felt like mentioning it 

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Make sure when you set up any accounts you use your own name 

As it may compromise your self build status 


I run a LTD company with several accounts 

But for the self build I opened three accounts in my wife’s and my name At merchants that I already had accounts at 

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Ok so my gut instinct was wrong !

They will give a 15% discount to trade I.e a company 

So !

 

Can I get one of my non existent friends with a company to buy the item . Sell it to me at purchase price ; then I can claim the vat back later .

Is there a problem for the purchasing company in this situation????

 

cheers ! 
 

p.s hate it when a discount is mentioned but you can’t get it !

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On 18/11/2019 at 11:17, pocster said:

I want to make a purchase - the seller won’t drop the vat even though it’s a self build . 

 

What is it you want to buy? They can't zero rate materials. Not allowed unless they supply and fit.

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My Dad always jokingly ask "where's my 100% discount", sometimes the person at the counter would say "sorry I forgot" and knock off whatever the standard trade discount was.... But that was the days before computers.

Edited by Temp
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If you are buying them and fitting yourself I think your best bet is not to ask for the VAT off as they will get confused. Just ask for their best price/discount and reclaim the VAT as normal.

Edited by Temp
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You could get someone with a legitimate company to buy these goods for you and sell them back on for the same price. I cant see why that wouldn't work for the purpose of claiming VAT. 

 

I'm assuming then, that they wont offer a account to a sole trader?

 

 

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13 minutes ago, AdamSee said:

You could get someone with a legitimate company to buy these goods for you and sell them back on for the same price. I cant see why that wouldn't work for the purpose of claiming VAT. 

 

I'm assuming then, that they wont offer a account to a sole trader?

 

 

Yeah . This is my best bet . Just got to find someone with a vat registered company.

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1 hour ago, Oz07 said:

Is it an online order or local what are u looking for a purchase subject to vat then u claim it back? Does this supplier literally knock 15% off when dealing with any incorporated company?

It would seem so . Not sure if the difference really to selling it direct to me .

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23 minutes ago, PeterW said:

You won’t get the statutory warranty under the Consumer Rights Act, and will have limited recourse to the manufacturer (you will need to go via who ever bought them for you)

 

 

 

And if it comes to needing a refund, most organisations will only make a refund to the credit card that was used to purchase the goods, which won't be your card. You're effectively paying for second hand goods.

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