Builder doesn't want me to pay vat

InsulateMeDaddy

Hi there,

Had some work done on the house. Builder implied he would like cash and I was ok with it but then said I might as well, why would he care.

After the work was done, he was a bit in a fluster when I said I wanted to pay vat. He said is work is guaranteed and he would issue an invoice but thought we'd arranged cash so was quite insistent.

Is this a red flag or am I being paranoid? I admittedly know little about how vat would effect him.

Thanks in advance

Citizen Six

https://www.boards.ie/discussion/2058315386/builder-doesnt-want-me-to-pay-vat

If he charges you vat, then he has to declare the income, and pay tax on it.

InsulateMeDaddy

I don't care about his side, he can fiddle it down the river.

But as a consumer does that put me in the wind if it's a bad job?

Appreciate your reply! I'm a new homeowner and just learning proper procedure

scwazrh

https://www.boards.ie/discussion/comment/121156157#Comment_121156157

Unless you get an invoice clearly showing the vat amount you are not paying vat .It’s called a vat receipt for that purpose.

if he’s not registered for vat , then he can give you an invoice and you don’t have to pay a vat amount

gipi

He may have quoted you a "cash price" for the job. A "VAT price" could be 13.5% dearer, maybe that's why he's reluctant to put numbers on paper

mickdw

I believe for works like extensions now that job site address has to be registered with revenue at the start.

Where builder has gone with cash job, it is getting more difficult then to back track and go through the books.

Citizen Six

https://www.boards.ie/discussion/comment/121156255#Comment_121156255

It would be more than 13.5% dearer. He has to factor paying tax on the payment, not just vat.

downtheroad

https://www.boards.ie/discussion/comment/121165460#Comment_121165460

A lot dearer than 13.5% more because if he's nor declaring vat you can be certain he isn't declaring this for income tax either.

JeffKenna

If you agree to pay someone cash you can't double back and start saying you want to pay VAT. That's actually really bad form and breaking your word.

-F1-

https://www.boards.ie/discussion/2058315386/builder-doesnt-want-me-to-pay-vat

Odd that you want to increase your cost by 13.5% after the work is done.