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Question on UK VAT?

post #1 of 6
Thread Starter 
I intend to try a new London tailor next month (one who doesn't visit the U.S.). As the tailor will require a deposit, with the balance due when the suit is completed, I'm wondering how the VAT refund works in such an instance.

There is a three-month expiration on refunds, but I won't have any goods to show customs when I leave the first time round (despite having paid a deposit incl. VAT). Is there an exception for deposits, with the cumulative bill shown when the completed goods leave the country?

Thanks,
GC
post #2 of 6
Just settle the VAT refund with the final invoice when you take the suit out of the country.

Whether the deposit does or does not cover VAT, is irrelevant. You pay an agreed amount, which will be deducted from your final invoice (which will include the VAT). Should the job go wrong (I hope not), the firm will have to refund you that very same amount of deposit you've paid.
post #3 of 6
Thread Starter 
Thanks, Bengal. As most tailors just take half down, as a follow-up -

1. If I put down 1,200 gbp (1,000 gbp + 200 gbp VAT) down for the deposit in Jan 2014
2. And pay the remaining 1,200 gbp when I pick up the suit in August 2014

Won't HM Customs only refund the second 200 gbp, as the first bill has expired? When I walk out of the country with the goods in August, the only valid current invoice I'll have is for the second 1,200 gbp.

Apologies if I'm being obtuse here.
post #4 of 6
No, it would be my understanding, you'll get one invoice

Suit GBP 2400 (incl. VAT = GBP 400) dated at completion or collection date August 2014

Payment: Deposit GBP 1200, January 2014; Balance GBP 1200, August 2014.



A written request to pay the deposit would not be an invoice, but a pro-forma invoice. An invoice is for services or goods supplied.
post #5 of 6
I have a somehow related UK VAT question, so I hope OP doesn't mine my posting in his thread.

I sent a pair of shoes to be repaired by one of the usual Northampton Forum favorites. They did a great job. However, they didn't take out VAT when charging me for the repairs. When asked if they forgot to take out the VAT, they said that for repair of used shoes, they can't take out the VAT. I tried searching online to verify whether this is true but couldn't find an answer.

Does anyone know? Can someone point me to a reference?

Thanks and sorry if this is OT; happy to start a new thread.
post #6 of 6
Thread Starter 
Quote:
Originally Posted by bengal-stripe View Post

No, it would be my understanding, you'll get one invoice

Suit GBP 2400 (incl. VAT = GBP 400) dated at completion or collection date August 2014

Payment: Deposit GBP 1200, January 2014; Balance GBP 1200, August 2014.



A written request to pay the deposit would not be an invoice, but a pro-forma invoice. An invoice is for services or goods supplied.

Thanks, Bengal - appreciate the help.

darkoak - I sent shoes for repairs to EG several years ago, and was never charged VAT. Perhaps the policy has changed, but that's the only data point I have.
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