Another VAT anomaly - more serious this time

jerry12953

jerry12953

Suspended / Banned
Messages
12,421
Name
Jeremy Moore
Edit My Images
No
Very recently I bought a refurb OM-5 from the OMDS website for what I thought was a good price. The camera arrived in good time (although the charger didn't have a UK plug). I asked OMDS for a VAT receipt only to be told that although the price included VAT, OMDS didn't supply VAT invoices because they do not supply to businesses. So as a VAT registered individual I cannot claim the VAT back! The same would apply to any professional photographer.

OMDS referred me to their T&C's which state

§ 4 Prices
The price of a product shown on the website is understood as including value-added tax but excluding shipping costs, bank and credit card charges (if nothing further has been stated).

The price stated on the order confirmation is the final price and includes all taxes (including value-added tax). ..........

and

* 2 For the avoidance of doubt, our Online Store is dedicated to consumers. If you are a business, please, mind that we do not issue VAT invoices to our customers buying through our Online B2C Store, therefore, as a business, you will not be able to claim the VAT back.

Who goes through the small print (there are 12 sections in the T&C's) like that before making a purchase? If printed they would cover 4 sides of A4. I was and am shocked that a reputable company like OMDS can attempt to get away with this. I wonder how many others have fallen foul of this shoddy practice?
 
Last edited:
OM Digital Solutions?
 

The Value Added Tax Regulations 1995

These Regulations revoke and remake, with certain amendments, all the regulations relating to VAT, namely—The Value Added Tax (Supplies by Retailers) Regulations 1972 (S.I. 1972/1148) (as amended)The Value Added Tax (Trading Stamps) Regulations 1973 (S.I. 1973/293)The Value Added Tax (Repayment...
www.legislation.gov.uk www.legislation.gov.uk

I think (check with your accountant) you can still claim under section 3 of this.

Edited @AndrewFlannigan response is much clearer
 
Last edited:
You might have bought from a non-UK business or you may have bought from a business which is using a margin scheme. In the latter case, you will not get a VAT invoice.
 
Norseman said:
You might have bought from a non-UK business or you may have bought from a business which is using a margin scheme. In the latter case, you will not get a VAT invoice.
Click to expand...


I suspect the OMDS website I most recently bought from is based in Germany. However all the prices are in £sterling and it is aimed at the UK market. The T&C's state that VAT is included but that it cannot be claimed back. That is the problem. And you have read through all the small print to discover that.

It isn't anything to do with the margin scheme as that relates to 2nd hand items.
 
Refurbished would be classed as second hand, because technically it is, because it's already been used, so can't be classed as new, even if it's ex display, it can't be classed as brand new.
 
TG. said:
Refurbished would be classed as second hand, because technically it is, because it's already been used, so can't be classed as new, even if it's ex display, it can't be classed as brand new.
Click to expand...

This doesn't apply to the Fujifilm UK Store which sells Refurbed cameras with a VAT receipt - though I suspect that (most) of these are DOA cameras.
 
TG. said:
Refurbished would be classed as second hand, because technically it is, because it's already been used, so can't be classed as new, even if it's ex display, it can't be classed as brand new.
Click to expand...

Possibly. I've bought refurbs before that had 20% VAT included in the price. Ditto "ex-display".
 
This is what is on my recent invoice for a brand new Fujifilm NP-W126S battery.

"These items have been sold as part of a second-hand
margin scheme supply, therefore, in accordance with
current legislation no VAT for these items is included in the
VAT breakdown shown."

On chat Wex said

"Hi there, this is just the invoice VAT code explanation"

and when I said so you have supplied a second hand battery?

"It's not. It's a new battery. That wording is just for the VAT code. Check the invoice for the VAT on it. It shows it's new"

Like Mike I then gave up because I have better things to do.
 
taxboy said:
There is no obligation to use the second hand margin scheme for second hand goods - it is a choice for the retailer
Click to expand...


In my experience most retailers do use the margin scheme - as far as I know. It makes the retail price lower, which is no advantage to the customer if they are VAT registered. The only thing I've bought 2nd hand in recent years has been a strap for £20 and I had no idea how they calculated the VAT element on that. On the delivery charge, I think. It was a very strange percentage.
Peter123 said:
This is what is on my recent invoice for a brand new Fujifilm NP-W126S battery.

"These items have been sold as part of a second-hand
margin scheme supply, therefore, in accordance with
current legislation no VAT for these items is included in the
VAT breakdown shown."

On chat Wex said

"Hi there, this is just the invoice VAT code explanation"

and when I said so you have supplied a second hand battery?

"It's not. It's a new battery. That wording is just for the VAT code. Check the invoice for the VAT on it. It shows it's new"

Like Mike I then gave up because I have better things to do.
Click to expand...


Is there an emoji for I don't understand that at all.........?
 
You must log in or register to reply here.
Back
Top