VAT on items supplied by builder & guarantee query

(5 Posts)
Eloise11 Sat 30-May-15 13:59:03

Had work to front done - - new door etc. Updated invoice for balance includes item of door furniture (that hadn't been part of original calculation as this was something we asked builder to get and fit after work had started).

VAT has been recalculated to take into account the new item.

The builder will have paid VAT when he bought the item so surely it should have been sold to us VAT free? It seems odd that he's added it to the whole again and done another VAT calculation - bringing the total bill up. Not by a huge amount but it doesn't seem quite right. The cost of fitting all items was, incidentally, included in the original invoice.

The invoices say nothing about workmanship or materials guaranteed. Have queried that and awaiting reply. Of course, statutory rights in place but I'd have expected, as a matter of course, builder's guarantee/warranty clause.

Thanks for any suggestions.

prepperpig Sat 30-May-15 14:05:54

Sounds right to me. He buys the stock item for £100 which is £80 plus vat. He then sells its to you but because he's selling it to you then he has to charge vat on it because its a vatable supply. He has to hand over the vat you pay him to HMRC.

Every time value is added the vat is due (hence the name value added tax).

MrsFlorrick Sat 30-May-15 14:46:43

Prepperpig is correct. Every time a trader or retailer passes/sells on an item, VAT is added.

The builder isn't making any extra on that but the VAT man is.

Eloise11 Sat 30-May-15 15:53:26

Many thanks - much reassured - just wanted to be sure as I'm likely to use him again.

On the question of workmanship and guarantees? Nothing to suggest this is in place on his invoices/website.

Eloise11 Sat 30-May-15 15:58:21

Just had email back from him to say that workmanship guaranteed for two years but if a problem with the door or paint, I should contact the retailers. Difficult at the builder bought the items himself and his invoice (not itemised) doesn't mention the manufacturers/retailers by name.

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