Model Shop Overcharged and then Refused a Credit

Don't give up. Point out that exports outside the EU are zero rated and you are entitled to reclaim the VAT. Say that you had originally wished to be credited for the amount you were overcharged which you would put to another purchase from them. But given their response you now "require" that amount be refunded and unless it is refunded you will refer the matter to the Office of Fair Trading (or should it be HM Customs and Excise?).

Cheers David

Peter,

It's not usually that difficult - basically credit out your original sales transaction with VAT and re-enter a new transaction with zero rated VAT. The only problem might have occured if your original transaction went in at the end of their VAT quarter and they had done their VAT calculation for the quarter and settled up with the VAT man. Then it gets a bit cumbersome to track back credits when things are set in stone. But you normally get a month's grace to settle your VAT bill and, from the chronology of your order, there should have been enough time to make retrospective adjustments.

I suspect that someone can't be bothered to do a small bit of messing around in their accounts for a quid. With the small size of the amount, they might have thought it better to write it off as discount on your next purchase to maintain your custom, and don't even bother trying to adjust the VAT.

Jim

customer

month's grace to

Isn't this one for your credit card company.

Kevin

I'll preface this by saying I don't have a model shop and am just an ordinary buyer of model railway items in the UK.

I do export some items through my business (not rail-related) and *always* invoice non-EU customers for the cost amount without VAT. Some EU customers are charged VAT, some not, as it depends on whether they are registered for VAT in their own country.

I also buy stuff online and am very careful to clarify costs and tax details when buying from abroad because I assume the vendor is usually dealing with non-export (for them) customers.

Anyway, what amount did you authorise be charged to your card/Paypal account? If the full amount, I'd say it is your error for not asking them to invoice you for the lower amount.

For them to start mucking about with a refund now will incur charges and time costs for them. Having accepted the price that was quoted to you, are you prepared to pay their refunding costs or are you gambling on them being intimidated into doing it for nothing by posting details of the case here?

Or would you rather just be more careful in future?

In their situation I would offer you a credit note against future purchases.

Why? He authorised the transaction and is now trying to change the contract?

What makes you think he authorised the transaction?

R.

Presumably he gave them his card number and possibly the verification number. That's as good as authorising the transaction. Even so, I still think the shop is being unreasonable.

Let's name and shame. Is it Howes or Osborn's?

MBQ

No, it's not. Compare with the situation in some restaurants, where the credit card machine leaves a blank section for service/tip/gratuity. It's unwise to leave them blank, but if you do and sign for the original amount and they later add on a bit, you certainly haven't authorised that. Not an exact analogy, mind.

The difficulty in the OP's case, of course, is proving that the original transaction was VAT-free.

R.

I Emailed them a list of what I wanted. I purchased one item through their secure server so they's get my CC details. There was an item or two they didn't have listed online, so I couldn't order everything through their server. Of course when the order arrived, they hadn't even bothered to write out an invoice listing the individual items and prices- there was just a credit card receipt in the packet. We are talking a dozen 2-3 quid items. Everything was charged at full list price so it was easy to add up.

When you order online from UK merchants, ~most~ don't have a "I'm not in the UK, Please deduct VAT button" on their servers. It happens after the fact. Just like postage- that's usually a second CC charge after the merchant's trip to the post office.

Peter

If the cost was net of VAT and the retailer has charged VAT (illegally) then surely it is one for the CC company.

Kevin

I cant blame them, It would cost more in time and money to them then You would get back

But: a) Its not their money to keep, and b) they lose a customer and his repeat business

Presumably the retailer is not psychic and needs to be given the card details etc in the usual way?

No it's not, except it's plain daft to leave such spaces and the total box blank.

So how was the final order agreed between you?

Sloppy invoicing procedure on their part, IMO, if they didn't enclose you a detailed invoice, unless they had already issued some sort of "pro forma" on-line?

Not for anyone who orders (non-railway stuff) through me, there isn't.

Still unclear why you didn't clarify your non-VAT status with them at the time of ordering. I do whenever I order from outside the UK.

But we don't know that he has because no invoice showing the presence or otherwise of VAT has been seen.

What if the retailer is not registered for VAT and has just charged a price equivalent to common VAT-inclusive prices?

I don't know either way, but there are a lot of small eBay traders who use such a system of pricing for Buy It Now offers.

On the way they market their goods, I doubt whether they are VAT registered, but of course one could argue that they all are.....

What repeat business?

:-)

He's quick enough to bring the matter to this newsgroup for (at least) comment.

Suggests he is so dissatisfied he would be unlikely to give them another go.

Exactly!

Hatton's (among others) is very conscientious at doing this. They even send you an e-mail to say that so-and-so packed your order at such a time and date. Some dealers will quote an all-inclusive price to anywhere in the world, offsetting extra [surface] postage against VAT, but you do not necessarily get a bargain. Some small "cottage" operations producing kits or spare parts are not VAT-registered so don't deduct anything, but I always ask when ordering from someone new.