Are companies obliged to pass on the VAT reduction?

[BlackAmericanoNoSugar]

Or is it discretionary? I'm buying a new car, price agreed in August and (according to them) not changing now that it's ready to be delivered. I've pushed back asking for details of their decision. Could they be reported to the tax man? I'm assuming that they will issue a final invoice with a lower VAT but higher pre-VAT price to bring it to the original total making a bit more profit for them.

VAT is non negotiable. Anything sold since the date of the new rate, must be charged the new rate. The only way I see that maybe you would be liable for the higher rate would be if you paid a deposit before the rate changed.

If its like the hospitality sector with their VAT cut, then no, they don't have to pass those savings on to the customer. This MSE article explains it:

www.moneysavingexpert.com/news/2020/07/vat-cut-to-5--for-hotels-and-attractions---will-you-get-a-discou/

I did pay a deposit Brissiegirl, does that mean that I'm still paying the full VAT?

I didn't think the 5% vat rate applied to everything. It was only the hospitality industry ? And then only on food. It's not across the board so that will be why they've not passed on a cut - there isn't one in their industry ?

@GinisLife

I didn't think the 5% vat rate applied to everything. It was only the hospitality industry ? And then only on food. It's not across the board so that will be why they've not passed on a cut - there isn't one in their industry ?

General VAT is down from 23% to 21%. Anyway, they have come back with an amended invoice with the lower VAT rate. Yay!

General vat was only ever 20% anyway ? Are you in the uk ?

@Rhubarbgingergin

General vat was only ever 20% anyway ? Are you in the uk ?

I'm in Ireland, not the UK, hence posting in Craicnet.

Good to hear u got the amended invoice. Sorry for not getting back to u earlier, I wasn't feeling great. Enjoy ur new car