VAT on top of surcharge.

mikegsxr · Jun 6, 2014

Hi all,
Just blew £282.23 on a new power steering pump for me fender. I know, I know e-blag, pads crads etc. But as the original lasted 11 years and 90,000 miles thought I'd go for OEM. £70 of the total is a surcharge to encourage me to return the leaky item. Looking at the bill I have been charged VAT on the surcharge so should I expect £70 + VAT when I return the old one? HMRC website suggests that VAT is not applicable to the deposit.

Any one got experience of this?
Cheers,
Mike.

nobber · Jun 6, 2014

Who did you buy it from?

nobber · Jun 6, 2014

According to the HMRC you have to pay the full amount of VAT, so if the box costs say 120 quid outright, the vat is 20 quid, if you give the old box plus say 60 quid the vat is still 20 quid. This is of course passed onto the customer.

HM Revenue & Customs: Part-exchanges, barters, contras and VAT

mikegsxr · Jun 6, 2014

Hi,
Bought from LandRover, see what you mean on the url you posted.
I looked at HM Revenue & Customs: Instalment payments, deposits, credit sales and VAT
looks like HMRC like it both ways, probably why they have so much of my money and all their accountant chums are on six figure salaries

landowner · Jun 6, 2014

I used these
http://www.landyzone.co.uk/lz/f7/any-one-used-these-recon-steering-box-252849.html
Cracking job, took it too them but they do a collect and deliver

jamesmartin · Jun 6, 2014

mikegsxr said:
Hi all,
Just blew £282.23 on a new power steering pump for me fender. I know, I know e-blag, pads crads etc. But as the original lasted 11 years and 90,000 miles thought I'd go for OEM. £70 of the total is a surcharge to encourage me to return the leaky item. Looking at the bill I have been charged VAT on the surcharge so should I expect £70 + VAT when I return the old one? HMRC website suggests that VAT is not applicable to the deposit.
Any one got experience of this?
Cheers,
Mike.

yes its tricky as a surcharge stands a good chance of not been repaid if goods dont meet criteria, so vendor would have to pay the vat on surcharge , it usual to charge it and repay it with return of surcharge

mikegsxr · Jun 6, 2014

Thanks all for the replies,
I'll expect £84 back then. Will post next week some time and let you all know how I got on with this.
Cheers,
Mike.

mikegsxr · Jun 9, 2014

Got £84 back today, so expect to get your VAT back on the service exchange cost.
Think I'll spend it on a slab...

Cheers Mike.
Replacing the power steering pump was a nice easy job, thanks to Shifty for the bleeding dodge posted a while back.

VAT on top of surcharge.

mikegsxr

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nobber

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nobber

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mikegsxr

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landowner

Pensioner Pete

jamesmartin

Well-Known Member

mikegsxr

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mikegsxr

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