VAT on site fees?

Discussion in 'Motorhome Chat' started by icantremember, Apr 29, 2013.

  1. icantremember

    icantremember Funster

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    We are currently on a CC Cl in Kent where we have stayed previously.

    Although in the book @ £10 for the 2013 season the owner is now charging £12 to cover vat which he says must now be charged on camping.

    Does anyone know if this is a new tax and will it mean all site fees increasing?
     
  2. Janine

    Janine Funster Life Member

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    They can only charge VAT if they are VAT registered.

    This is compulsory for businesses with a turnover is over £79,000 per year but optional for businesses with a lower turnover, usually if they have purchases on which they can claim back VAT.

    Ask to see their VAT certificate if you suspect it's a bit of a con to get more money out of you. You are also entitled to a VAT receipt which should show their VAT registration number.
     
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  3. Gromett

    Gromett Funster

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    Also, companies dealing with the general public are not supposed to advertise prices excluding VAT as it is considered deceptive like any other hidden charge.

    You are only allowed to quote VAT exclusive prices if you deal with business who are likely to be VAT registered.

    I know this because loads of small computer companies got smacked for this practice in the late 90's early 00's.....

    Sounds like he wants to put his prices up and is using it as a convenient excuse.
     
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  4. Janine

    Janine Funster Life Member

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  5. Gromett

    Gromett Funster

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    If the price is published (advertised) it is not only sharp it is illegal and the ASA will have something to say about it if a complaint is received. A letter to the CC may be warranted as well.
     
  6. Gromett

    Gromett Funster

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    The specific rule I am on about is part of the CAP code of the ASA

    Rule 3.18 states that "quoted prices must include non-optional taxes, duties, fees and charges that apply to all or most buyers. However, VAT-exclusive prices may be given if all those to whom the price claim is clearly addressed pay no VAT or can recover VAT. Such VAT-exclusive prices must be accompanied by a prominent statement of the amount or rate of VAT payable".


    PS: You can find the full code here if you are daft enough to be interested :Rofl1:
    http://www.cap.org.uk/Advertising-Codes/Non-broadcast-HTML.aspx
     
    Last edited: Apr 29, 2013
  7. scotjimland

    scotjimland Funster Life Member

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    I agree with the above replies re VAT ..,

    the mistake the CL owner made was using VAT as a reason for a price higher than advertised in the Club book ..

    The price in the CC book is a "guide price" ..

    Quote page 270, Sites Directory Handbook 2014.

    " Pleas note this is the minimum you can expect to pay and pitch fees may be subject to variation, please check BEFORE booking, you may wish to confirm on arrival "

    unquote.
     
    Last edited: Apr 29, 2013
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  8. cydersyd

    cydersyd Funster

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    Name and shame so we can all avoid him!
     
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  9. Parcverger

    Parcverger Funster - Campsite Owner

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    Here in France the TVA (=VAT) turnover threshold for 2012 is €34,600 for a service based business and €89,600 for commercial activities, bars and restaurants and those who let furnished accommodation. When we set up Parc Verger we were told that we had to register as our projected turnover was above the service-based threshold, so our prices have always included TVA. The only addition to our prices is the "taxe de sejour" that applies only from May to September, but this is shown on our website and price list.
    The austerity problems are revealed here because until recently the service-based TVA rate was 5.5%, now it is 7%, and next year it will rise to 10%. :cry: Not good news for prices, I'm afraid.
    Bob
    www.parcverger.com
     
  10. Gromett

    Gromett Funster

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    I don't think any of us are complaining about being charged VAT. But adverts and listings should make it that the price has hidden extras.

    I am sure you are one of the well behaved ones that shows the price fully inclusive :thumb:
     
  11. Janine

    Janine Funster Life Member

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    We don't know that they've done anything wrong yet!
     
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  12. Jim

    Jim Ringleader

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    He may well be doing the right thing. Thing is with VAT, you must register the moment you think you might reach the threshold. The book could easily be in print before he registered.

    Selling to business and VAT does not even have to be mentioned till the invoice is produced. But to joe public it must be included in the price. or Shown in type as large as that type giving the price.
     
  13. bigfoot

    bigfoot Funster

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    I'm sure some farmers would be well pleased to have income that exceeds the VAT threshold.
     
  14. Janine

    Janine Funster Life Member

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    It's not income though, it's turnover.
     
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