LVT Supply & fit & VAT

[Bozza]

So a reputable and established VAT registered local home furnishings shop is doing a range of LVT at £65 per square meter Including VAT for supply, and fit including screed and adhesive.  They give me a verbal quote for what I need which is £65 x my square m.  I tell them it’s a new build so zero VAT rated and they verbally quote me deducting the 20% just off the cost of the LVT.  I then highlight what I think is right which is it should be the 20% off the entire supply & fit, namely £13 off.  They say no because they don’t charge VAT on fitting I try to understand that and they wont go into details.
 

only thing I can think of other than they’re at it, is do they sub contract the installation to someone whose not VAT registered if so is that even allowed VAT regs etc.

 

 

Edited August 21, 2020 by Bozza

[nod]

They almost certainly sub the work out The vat will be on the materials

Ask them to Invoice you for the materials With a separate bill for fitting and then claim the vat with your vat claim 

[Thedreamer]

3 hours ago, Bozza said:

So a reputable and established VAT registered local home furnishings shop is doing a range of LVT at £65 per square meter Including VAT for supply, and fit including screed and adhesive.  They give me a verbal quote for what I need which is £65 x my square m.  I tell them it’s a new build so zero VAT rated and they verbally quote me deducting the 20% just off the cost of the LVT.  I then highlight what I think is right which is it should be the 20% off the entire supply & fit, namely £13 off.  They say no because they don’t charge VAT on fitting I try to understand that and they wont go into details.
 

only thing I can think of other than they’re at it, is do they sub contract the installation to someone whose not VAT registered if so is that even allowed VAT regs etc.

 

 

 

Should be zero rated.

 

Could you write them a signed letter declaring that you are building a house for residential purposes.

 

Also there was a previous discussion about VAT certificates on here.

 

 

 

[Andrew]

If a business is VAT registered it has to charge VAT on all eligible goods and services irrespective of who delivers the service. If they are going to be invoicing for the work, both the materials and labour should have VAT applied, which in your case would be zero rated as it's a new build.

 

If the fitting element will be invoiced seperately directly by the non-VAT registered fitter then that would not attract VAT but that would be quite a messy and irregular way of billing.

[Bozza]

Thanks for all the replies.  I did some research on the company. The guy I spoke to said to he was the vinyl installer but he’s also listed as a company director.  Which doesn’t make him a subbie unless he’s subcontracting himself to his own company,  even if that’s lawful it sounds a bit of a tax dodge.  Or he does subbie the work out and didn’t want to tell me that.  Which makes him a BSer. but regardless of my concerns he was trying to say I’d need to buy 20% more than my floor space due to wastage even though I was doing a simple planking layout throughout so that’s BS for sure having installed flooring before.   But one thing I’m sure was he was pretty arrogant and obnoxious and oozed that slimy sales crap you sometimes get,  so that’s good enough to take my £7-£10k business elsewhere.  My house is in quite an affluent area so he probably thought ching ching I was loaded and naive and it would be an easy contract to win.  If he’d be ok and honest about everything I’d have probably give him the business.  I’d rather pay a bit more to a decent competitor.