Is this misleading?

[monkey_tennis]

I ordered a product over the phone today, priced at £309.99

The agent who took the payment told me 'thank you sir, the item total is £309.99'.

My card was then charged for just over £350. I later find out from the company that prices online do not include VAT (I missed this, but it is there when I look again).

Is it wrong of them to not read out the total value BEING CHARGED to the card? Just reading out the item total exluding VAT is to me a little misleading.

What do you think? If I knew this was the case I may not have ordered.

[JGOffshore]

I believe that they are supposed to advise you of the amount that is being charged to your card. Perhaps you need to speak to your card issuer. The fact that you "missed" the VAT should be irrelevant - they are supposed to confirm the amount being taken. Of course they will probably lie and say they did advise you. :mad:

[monkey_tennis]

It's really got me fuming for some reason. I don't like being misled like all of us.

Is there anything I can do?

[Martin P]

I think it is, for example - what if you only had £310 on your card - it could have cost you over limit charges Etc.

[monkey_tennis]

I really need the equipment they are supplying me with so don't want to return it, but am annoyed at the price difference.

Should I just tell them I'll get legal involved and see what they say?

[monkey_tennis]

Just bumping this message to the top to see if anyone else has any thoughts on this?

[Beachcomber]

It all depends on how the question of vat is covered on the web site.
If the fact that vat is not included is buried deep in the depths of a huge terms and conditions page then they are guilty of misrepresentation of the true cost.

I had just the same issue with a supplier a few years back - all the web site prices / checkout system gave one price and the invoice when it arrived had vat added. Their response to this was that they were a wholesale site and 'obviously' vat isn;t included.

A quick call to trading standards gave me all the info and relevant legislation to quote in a letter to the supplier - which also mentioned that the transaction would also be reported to the card issuer who will reverse the payment pending an investigation - and they agreed to drop the vat charge.

They should have given you the correct amount being charged to your card but as that was a phone call it could come down to your word against theirs. Trading standards is your best next step.

[deniser]

If you are buying this item in the course of your business from a business supplier then you would expect it to be net of VAT. None of my suppliers ever show a VAT inclusive price and I wouldn't expect them to as VAT is irrelevant to me as I am VAT registered.

If you are a consumer and buying from a consumer website then you are entitled to assume that VAT is included in the price.

Which one applies?

[openmind]

I could only give an opinion if I knew what the site was and how they are presenting the prices...

[monkey_tennis]

They sell primarily to consumers.

[openmind]

Then in that case the prices should be clearly displayed as excluding VAT or have the inc. VAT price next to it in brackets...

[monkey_tennis]

Online the prices exclude VAT, but it does say next to them that VAT isn't included (I missed it, but it is clear) - however no price is given that includes the VAT in brackets.

I ordered over the phone, and was just told the item total was £309.99 (which turned out to be £354).

Trading Standards have told me to write to them, but the only address they have online is their UK warehouse, which doesn't deal with their customer services. They only have a telephone number for this, which re-directs to Singapore, and the English is awful - took me 3 or 4 minutes to spell my name out for them when I placed the order!

Therefore, I don't see any reasonable way that I can get in contact with them.

Their website: www.backdropsource.co.uk

Any suggestions?

[Stephen Berry]

I think you are justifiably annoyed. I order all sorts of business kit by credit card from a variety of sources - and they always confirm £ xxx plus VAT & delivery = £ yyy.

And for strategy .... use the graduated threat approach of the elephant ... don't go 'legal' at the first instant - register disappointment, confirm that you only authorised the lower amount - maybe even ask for a copy of the recording of the telephone conversation (if they haven't got it ... your word against theirs about whether they said it or not)..... then ask for a credit for the difference - calm, non-confrontational, factual, unemotional.

If that fails - the elephant then moves on to his next stage of dealing with the threat ..... but that's in the book !!! :)

[monkey_tennis]

The company only list a UK warehouse address, which contains none of their staff, they are based in Singapore.

My only way to contact them was via a live chat on their website where I was told that it is my responsibility to understand that VAT is included with their products, and also my responsibility to know what the final price will be.

I was also told 'how is it possible for you to give us the product ID over the phone, which you had to visit our website for, and then claim you didn't notice that VAT wasn't included'?

Do I take this as their refusal to refund? I asked them outright a number of times and only got back the responses above.

[deniser]

They sell primarily to consumers.
Trading Standards won't do anything if it is overseas.

If you are importing the item to the EU shouldn't they be selling it net of VAT anyway?

Regardless of that, you were misled on the phone so just ring your card company and file a dispute. they will look at the facts and allow the seller to respond and decide which way this should go.

[monkey_tennis]

Do I call my card issuer? And do I ask for a refund of the price difference, or the full item amount?

[monkey_tennis]

Just called the bank, because it was bought on a debit card and that it was a telephone conversation, nothing can be done.

Is there still hope?!

[Robert Wheeler]

Shouldn't the VAT be paid to HRMC on import? I am not entirely sure how the system works in these circumstances.

[silvermusic]

For UK companies fropm what I recall it's fairly straight forward. If you're selling to the public the prices need to be clearly displayed including VAT.

For Business to Business you would expect the prices to be ex-VAT. However, They should be quoting you the full price you're being charged on your card inc VAT. I've never known any company to not work this way. Often they'll break down the price such as £100 +VAT of £15 and the final total of £115.

Trying to work out the status of this company and it's not clear, neither do I see a VAT number anywhere on the site either. Make sure you get an invoice showing the VAT content together with their VAT number. If they're not will to supply a number I'd walk away from such a company and let HMRC deal with them.

[TotallySport]

I might be wrong but from what I can see is it says wholesale int he companies web site, which suggests it's main target market is companies, so VAT doesn't need to be shown, but it does semm to say under each price that VAT isn't included and on the checkout page it does says VAT and carrage will be added upon checkout.

SO IMO there web site is fine, although they should have a VAT Number. and should get a VAT receipt, but they have a warehouse in the UK so I wouldn't see a problem with that unless they are refusing.

[deniser]

Just called the bank, because it was bought on a debit card and that it was a telephone conversation, nothing can be done.

Is there still hope?!

Not with a debit card. It is a good idea to use a credit card rather than a debit card wherever possible so that you get the benefit of the legislation protecting you, not just if money was taken in error but also if the Company goes bust.