House of Fraser - VAT Disgrace

I wanted to but an Aquascutum raincoat but sadly that company doesn't ship to the smaller colonies. So I went online and brought it from House of Fraser in the UK at an advertised price of 700 pounds.

Then the fun started.

As we have to pay tax here on imports over $1,000 (which is about 670 pounds) I emailed them to make sure they reduce the price by the VAT for overseas customers (as every other legitimate luxury goods supplier does).

They responded that the price remains the same and the only difference is that they keep that extra component rather than giving it to the Government.

I went back saying that it is not fair that they discriminate against customers based on location and get themselves a nice little windfall in the process.

They responded that it is legal to do so and sent me a link to their terms and condition where they say it's set out (but it isn't).

The whole situation seems disgraceful to me - especially since now I will cop tax on the way in as well as a substantial delay at customs while those idiots get their act together. I was surprised that they didn't change their stance but instead had three different people writing to me confirming the case.

Will I buy from House of Fraser again?

Absolutely no chance.

Thought you guys would like to know about this sharp practice.

DW - ouch! That's unfortunate, but it seems to be increasingly common nowadays.

There are a few online retailers who are small and so they are not registered for VAT and so cannot reimburse you, such as Malford of London and Exquisite Trimmings.

There have been a few threads on here in the past discussing this practice, including threads which mention House of Fraser and Charles Tyrwhitt:

http://www.styleforum.net/t/349984/...items-shipped-to-the-states-is-this-normal-ok

http://www.styleforum.net/t/272784/charles-tyrwhitt-no-longer-reimburses-vat

http://www.styleforum.net/t/241471/uk-retailer-not-deducting-vat-for-non-uk-customers


Edited to add: Not to rub salt into your wound, but it would probably have been worth searching for a good Burberry trenchcoat on eBay.

Doubtless such a tiny section of the business that it is simply not worth the effort setting up systems to deal with it.

Surprised by this as they're not exactly a small operation; the Glasgow store is huge as is the Edinburgh one. They occupy probably some of the most expensive real estate in these cities. They are a notorious rip-off tho



OzzyJones said:

Surprised by this as they're not exactly a small operation; the Glasgow store is huge as is the Edinburgh one. They occupy probably some of the most expensive real estate in these cities. They are a notorious rip-off tho

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Size of store does not determine demand for VAT-free sales.



GBR said:

Size of store does not determine demand for VAT-free sales.

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Nvm

Thanks for the responses.

They are enormous so it's not a system or threshold thing.

It's no more than an old-fashioned greedy cash grab.

Not surprised they are known as a rip-off.

I responded to them that they should feel free to cancel my order. Next thing I got was a shipping advice.

@Dandy Wonka
http://m.houseoffraser.co.uk/Pricing+Availability/PricingandAvailability,default,pg.html
Found the above in their T&Cs. First paragraph states if outside EEC vat isn't charged

Thanks for taking the time.

That's true. They don't charge VAT. They charge the same price but for the unlucky few there is no VAT component.

It''s very poor form.

I have emailed some other purveyors I know there to see if there is some department I can complain to.

GBR said:

Doubtless such a tiny section of the business that it is simply not worth the effort setting up systems to deal with it.

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Not at all - in the case of Charles Tyrwhitt, to give another example, a large amount of their sales are overseas and they used to remove VAT at checkout without any problems whatsoever, but they then decided to go the House of Fraser route and to simply charge overseas customers the same as domestic customers and, instead of remitting 20% of the gross price to Inland Revenue for overseas purchasers, to keep it for themselves.

Also, there are plenty of smaller, specialist stores out there that are happy to remove VAT for overseas customers so I fail to see why a large business can't similarly do so.

It's not illegal, but it does strike me as unethical and, as in Dandy Wonka's case, it's unlikely to endear such businesses to customers.

Thanks Journeyman.

That little cash grab will cost them thousands of pounds in sales going forward.

Bunch of cunts.

How can anyone justify keeping a percentage of the sale that the government does not tax them on?
I can't see how it isn't illegal or at least would't be of interest to the relevant tax authorities.

I'm sorry but I don't see what the big fuss is about. If you don't like their policy then don't order, it is so hard?



chobochobo said:

I'm sorry but I don't see what the big fuss is about. If you don't like their policy then don't order, it is so hard?

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+1

I think the problem is they don't state that's their policy. They say overseas buyers don't pay vat but not that you'll pay the vat inclusive price anyway