Loxone and the VAT reclaim......a tale of woe and a warning to others

[Thorfun]

hopefully this will help others not do the same as me.......

 

I have completed our VAT reclaim and one of the invoices they asked for was for our Loxone system. Initially they rejected the Loxone system as it wasn't covered under the VAT reclaim scheme. I argued that it 100% classified as "allowable" under "Intelligent lighting as shown at https://www.gov.uk/guidance/goods-and-services-you-can-claim-for-under-the-vat-diy-scheme#goods-and-services-g-to-i and without the system we wouldn't have any lights.

 

They responded with the fact that the invoice shows "intercom" and "stereo" means that the system is capable of audio which isn't allowed. even if the system isn't being used for those things.

 

So, long story short, buy the Loxone intercom, audio server and stereo extensions and anything else that wouldn't be covered separately so they're on different invoices and don't claim for them allowing you to claim for the other stuff.

 

this mistake cost us about £1k in VAT reclaim.

[Temp]

Can you appeal deducting the cost of the non allowable parts?

[Alan Ambrose]

Thanks, that sounds like hard-won info. Nothing like a few inflexible and capricious tax rules to screw everything up, huh?

[garrymartin]

Long shot, but could you possibly have argued that the "stereo" element, along with the lights and various sensors, forms part of an "alarm system" which is allowable? Can't help with the intercom though...

[Thorfun]

8 minutes ago, garrymartin said:

Long shot, but could you possibly have argued that the "stereo" element, along with the lights and various sensors, forms part of an "alarm system" which is allowable? Can't help with the intercom though...

I did exactly this! They still said no. 

[Thorfun]

8 hours ago, Temp said:

Can you appeal deducting the cost of the non allowable parts?

They were adamant that as the system is capable of audio the whole thing is not allowable. 

[Thorfun]

8 hours ago, Alan Ambrose said:

Thanks, that sounds like hard-won info. Nothing like a few inflexible and capricious tax rules to screw everything up, huh?

Yeah. It’s crazy. Luckily I bought other Loxone equipment at other times and as they didn’t ask for those receipts they got repaid.