dont forget to get onto your wedding suppliers re VAT reduction

is that the VAT rate of 13.5% has that been reduced to 9.5%. We have booked for later this year what did your hotel etc say when you rang

Good point!

Same as above poster, how was it received by your hotel? Just wondering how to broach the issue with ours. Wedding is 22nd July so just makes it!

Is the fact we signed a contract for such and such an amount per head irrelevant in this circumstance?

Appreciate your help

I remember the document I signed for the hotel had something in it about subject to VAT rate at the date. Im not sure what part of the costs this referred to. The government stated it applies to hotels and restaurants so it should apply to the cost of a wedding in a hotel.

Just had a look at the information about his on the Revenue website.

http://www.revenue.ie/en/tax/vat/rates/rate-changes-jobs-initiative.html

What impact will the rate change have on traders?

In general, goods and services supplied before 1 July 2011 are liable to VAT at the rate in force at the time of supply, namely 13.5%. However, where goods and services are supplied in June 2011, by a trader who is obliged to issue a VAT invoice, and that trader issues the invoice after 30 June 2011, the rate in force in July applies, namely 9%.

A trader supplying goods and services to private individuals should always apply the VAT rate in force at the time of supply.

So that's something to mention if they refuse to give you the reduced wait.

However this bit confuses me.

What is the position with contracts existing on 1 July 2011?

Where a contract to supply goods or services is entered into before 1 July 2011, and the contract is not completed until after that date, the agreed VAT inclusive price may be subject to an appropriate adjustment due to the change in the VAT rate, unless there is agreement to the contrary between the contracting parties.

Opinions?

So are most hotels being agreeable to this??
As it is, I'm going to our hotel to pay the final installment of our deposit this weekend, so would liked to be armed with info , if I'm to broach the subject!
Our wedding is in December...so what exactly is the new rule/law??Thanks

I'm still waiting for a reply (e-mailed them) as I'd say there're unsure themselves. But im relaxed enough about it as I'm taking my 4.5% one way or the other.

There's zero change they can argue their position to effectively increase my signed contract by 4.5%. Not going to happen.

I'll follow up with a phone call next week though, just to square it all away and get a confirmation e-mail with our updated prices on it.

Contacted our hotel and they will discuss at next managment meeting. Will be pushing hard for discount.

I'm just wary that some sneaky hotels will say nothing and hold onto the extra few bob themselves.Though it's a major risk if they get found out.Suppose we'll just wait until this vat reduction is passed into law-anyone know when it kicks in?

krankykitty wrote: »

Well I just heard back from the hotel :mad:

They are saying that the price listed will not change because their operational costs food fuel electricity etc have increased yet they've reduced their prices over the last few years blah blah.

Any advice on what I can come back with?

Have you agreed a price with them? If so then they are increasing that price. If you have a contract they are breaking it. If they are not breaking the contract then they are overcharging VAT.
The minister said if the savings are not being passed on, the VAT reduction will be reversed. Maybe their response should be forwarded the relevant department in govt.

krankykitty wrote: »

Cheers kc66. Never thought of the contract breaking aspect!

Going to look for that speech of the ministers...

I really don't want to get into an argument with the hotel as I'd like there to be good will between all parties but I don't want to feel I'm being taken advantage of either.

you are being taken advantage of - they're effectively imposing a 4.5% increase on you.

explain it to the hotel this way. Their costs such as fuel etc have gone up over the past few years - that's fine. They took that into account in their prices when you agreed them and signed the contact. So say the accomodation price for wedding was €100 per head and this is what it says in your contact and what you agreed.

The hotel gave you this price at the time of booking which took into account their profit margin and current operating costs etc. It should also have taken into account their estimate of the movement of these between time of booking and time of wedding, whether that's 6 months or 2 years. This is your locked-in price.

So it was €100 per head. This accounted for as follows:

Sales price €100 - quote per above on what will appear on your final VAT invoice
VAT €12 - what they will pay over to government
Income statement €88 - what cash they will keep and the amount they will recognise in the accounts.

It is the €88 amount they calculate their operating costs, margin etc from.

Now the VAT rate has changed to 9%:

Sales price €96
VAT €8
Income statement €88

So their total stays the same - and the amount paid to the government is less and what you pay is less, hence the whole point of this initiative.

So they're just trying to increase their €88 and hence break your contract.