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Buying from Handango

7 replies · 1,851 views · Started 21 August 2003

I havent shopped there for a while buy just gone to buy Symbianware ebook reader, got as far as the final purchase confirmation screen and noticed they added VAT so I cancelled the order. I dont remember this happening in the past unless ive somehow missed it. I wont be shopping there again and was wondering if anyone has bought direct from Symbianware recently is it VAT free?
Cheers
Stezos

Yes I was surprised by the VAT thing too but fortunately I had a discount code which effectively brought the price back to what it should have been. However, I shall certainly reconsider any future purchases through them. Prices stated should be VAT inclusive if VAT is applicable, end of story. Which is how any decent organisation would conduct their business when selling to the genaral public. I was extremely disappointed and annoyed with such business practices.

Thanks for the replies. I didnt realise Symbianware shopping card also used handango for the checkout, so thats thats method out of the question. I may have to contact them if i cant find anywhere else to buy from, see if they can accept paypal or something like that. We get ripped off for prices enough in the UK so there is no way im paying VAT on an internet purchase from overseas.
Stezos

I bought then movie maker software and got stung for an extra bit and the software was/is C*&P!!!!! only cost $9.99 though

will seriously reconsider B4 buying there again!

[quote="crafti"]Prices stated should be VAT inclusive if VAT is applicable, end of story.[/quote]

Actually, exactly not. In the Eurozone retail market, sure, a supermarket or small shop would roll VAT into the consumer price ticket, because it means that you don't have to add numbers up in your head (i.e., a vendor assumes you are innumerate).

In the commercial (wholesale) markets; i.e., where both parties are likely to be VAT registered, you always quote ex-VAT, (because that is the end price) and itemise VAT seperately.

VAT law actually requires a VAT invoice to provide a total without VAT, the VAT component and the total. And the exact date at which the tax is charged, for VAT cycle purposes (i.e., when you claim it back). That's why supermarket receipts etc often say "this is not a VAT invoice", because they do not show the requisite data.

Remember that VAT is just a sales tax; you pay this in almost every country in the world in some way; in the US, you may have several sales taxes added onto your bill when you get to the checkout; they effectively always display ex-VAT price and expect you to add it yourself (i.e., American retailers assume that their customers are numerate and, er, intelligent :-?

[quote="stezos"]We get ripped off for prices enough in the UK so there is no way im paying VAT on an internet purchase from overseas. [/quote]

Unfortunately, Customs and Excise (who, by the way are the only people who can come in through your front door and seize goods without a warrant, so be respectful of them) have different views on this. There are a whole series of issues with VAT, but largely it all boils down to where the supply takes place. If the product or service ends up in the UK, then VAT is due, irrespective of where it started life.

This is easy to establish with a solid object (including software), but harder, say, for consultancy or intellectual services; if I am talking to a client in Russia on the phone, are my services being supplied in Russia or London? In the former case, no VAT is due, in the latter it is, and it all depends on Customs and Excise to make that decision.

Of course, if you go to the US, buy and install the s/w there, then come back to the UK, you should technically produce a sales receipt in the "stuff to declare" gate, and pay some customs duty on it. Of course you remembered to claim back the sales tax (up to 28%) in the US when you "exported" the software didn't you, and, er, do you have COCOM export license to take 128 RSA out of the US?
:roll:

[quote="JulesG"][quote="crafti"]Prices stated should be VAT inclusive if VAT is applicable, end of story.[/quote]

Actually, exactly not. In the Eurozone retail market, sure, a supermarket or small shop would roll VAT into the consumer price ticket, because it means that you don't have to add numbers up in your head (i.e., a vendor assumes you are innumerate).

In the commercial (wholesale) markets; i.e., where both parties are likely to be VAT registered, you always quote ex-VAT, (because that is the end price) and itemise VAT seperately.

VAT law actually requires a VAT invoice to provide a total without VAT, the VAT component and the total. And the exact date at which the tax is charged, for VAT cycle purposes (i.e., when you claim it back). That's why supermarket receipts etc often say "this is not a VAT invoice", because they do not show the requisite data.[/quote]

With all due respect, you actually emphasise my points. Handango is not targeting the commercial market and supplying resellers etc, whereby I agree VAT exclusive prices would be quoted as the norm. They are selling products to end users, i.e. consumers, making Handango the "retailer" and as you point out, VAT inclusive prices should be quoted as the norm, and certainly good practice. Unlike that which you mention, this is not restricted to small business and supermarkets but ALL retailers selling to consumers.

The Consumer Protection Act 1987 makes it a criminal offence to give consumers a misleading price indication about goods, services etc. What is seen as "misleading" may be subject to interpretation and I am not suggesting they are acting unlawfully, merely displaying bad practice, in my opinion.

See Department of Trade and Industry Consumer and Competition Policy Directorate document "Code of Practice for Traders on Price Indications"

Definition of Consumer:
"means anyone who might want the goods, services, accommodation or facilities, other than for business use"

Which is me, and I've no doubt many others that might buy from the likes of Handango.

See Article 2.2.6 Under Value Added Tax:
"All price indications you give to private consumers, by whatever means, should include VAT."

Hence my statement, "Prices stated should be VAT inclusive if VAT is applicable, end of story", which in the context of the thread, I stand by.

Also, my comments in no way suggested that VAT should not be charged. I wrote VAT "if applicable" should be included within the quoted price. And, VAT inclusive prices as you know contain required taxes which would satisfy Customs and Excise, it does not avoid it.

As for the invoice, there is nothing stopping Handango issuing a VAT invoice even if the quoted price is inclusive of VAT. Most reputable internet retailer (ones that are VAT registered) provide an invoice with the total costs, which are the "quoted" cost, and a breakdown of the elements of such costs, i.e. Units net price, carriage and VAT, a show a "tax point date". This is a simple calculation and there is no reason why Handango should not be able to do this.

One might argue that my comments are pertinent only within the UK however, good practice is good practice and if Handango are taxing source due to selling within the UK, then they should act appropriately, which I believe they are certainly are not doing.

Was this a transaction from the Handango UK site? If so, try buying from the American one in Dollars (as long as the exchange rate is favourable of course), this usually works out cheaper...