leinsterman
Registered User
- Messages
- 5
Hi,
First time poster, hoping to find an answer to whether the following example is an industry norm or is just someone trying to
I received a quote from a VAT registered home repair company to do a specific item of work.
The quote received was ~€1000 for equipment, ~€1000 for labour. The quote summed this up (€2000). AS equipment < 66.67% of total, the correct VAT to be applied is @13.5%, giving a total of €2270.
All above seemed fine, however when I checked the price of equipment myself on the internet, I found the the equipment price of €1000) was the price inc. 23% VAT, so ex VAT price was €813.
Am I not correct that the quote should use the €813 price for equipment cost, rather than the €1000, as otherwise I'm paying VAT twice on that equipment? i.e. the 'correct' price should be (813+1000)*1.135 =€2058?
If so, is this be an accepted 'norm' in the trade that allows an increase profits on jobs, so can expect to see this repeated in otehr quotations, or is this the exception, normally would not happen?
Thanks,
Paul
First time poster, hoping to find an answer to whether the following example is an industry norm or is just someone trying to
I received a quote from a VAT registered home repair company to do a specific item of work.
The quote received was ~€1000 for equipment, ~€1000 for labour. The quote summed this up (€2000). AS equipment < 66.67% of total, the correct VAT to be applied is @13.5%, giving a total of €2270.
All above seemed fine, however when I checked the price of equipment myself on the internet, I found the the equipment price of €1000) was the price inc. 23% VAT, so ex VAT price was €813.
Am I not correct that the quote should use the €813 price for equipment cost, rather than the €1000, as otherwise I'm paying VAT twice on that equipment? i.e. the 'correct' price should be (813+1000)*1.135 =€2058?
If so, is this be an accepted 'norm' in the trade that allows an increase profits on jobs, so can expect to see this repeated in otehr quotations, or is this the exception, normally would not happen?
Thanks,
Paul