Do Powercity/DID/Harvey Norman sell Ex Vat?

Happyhouse22 · 15-06-2021 6:39am #1

Building a new house and have gotten to the stage that we need to order fridge, dishwasher oven etc.

Looking at prices online and all prices include Vat, just wondering if it is possible to purchase through builder and get a price excluding VAT from these retailers?

Bonzo Delaney · 15-06-2021 6:47am

Happyhouse22 wrote: »

Building a new house and have gotten to the stage that we need to order fridge, dishwasher oven etc.

Looking at prices online and all prices include Vat, just wondering if it is possible to purchase through builder and get a price excluding VAT from these retailers?

Might not save anything on over all cost as builder still has to charge you 13.5% vat on cost of product and most builders would charge a 10% general handling charge on the item also as they purchased the item, they assume responsibility for the item.

GrumpyMe · 15-06-2021 6:59am

And then there is the
Services taxable at the rate of the goods (the two-thirds rule)

"If the cost of the goods used in carrying out the work exceeds two-thirds of the total price:
the rate which applies to the goods then applies to the entire transaction.
If the costs of the goods used in carrying out the work does not exceed two-thirds of the total price:
the rate which applies to the service then applies to the entire transaction."

https://www.revenue.ie/en/vat/vat-on-services/services-taxable-at-the-rate-of-the-goods-the-two/index.aspx

Happyhouse22 · 15-06-2021 7:12am

Thanks for your reply

But just to be clear do these retailers offer this option?

Ideally we want the builder/kitchen supplier to be responsible for these items.

CIARAN_BOYLE · 15-06-2021 7:23am

Happyhouse22 wrote: »

Thanks for your reply

But just to be clear do these retailers offer this option?

Ideally we want the builder/kitchen supplier to be responsible for these items.

Businesses don't get to buy ex vat.

They buy paying vat and claim it off revenue. They also charge the vat when they sell and pay it to revenue.

So your builder would pay power city the same amount as you would.

Buddy Bubs · 15-06-2021 7:25am

Happyhouse22 wrote: »

Thanks for your reply

But just to be clear do these retailers offer this option?

Ideally we want the builder/kitchen supplier to be responsible for these items.

A vat registered business, which all these are, cannot sell their products ex vat. They can sell to another vat registered business who can claim the vat element back. Think that might be where you are confused.

The builder/kitchen fitters could claim it back but would have to charge you vat while selling it to you.

Assuming all above board of course....

cython · 15-06-2021 7:26am

Responsible in what sense? That in the event of a warranty issue you go to them and they in turn go to the retailer/manufacturer? Or do you mean something else?

If the above I can't see why the the builder/kitchen vendor would even entertain such a request unless they can collect a significant premium on the price. And were they in the business of taking such responsibility I'd expect them to have a supplier of their own with whom they can have/manage a relationship rather than bouncing around retail outlets to suit every customer's preference. It's a further potential headache down the line, after all.

If you mean something else then please disregard the above, but it might help to clarify your goal at the same time.

GrumpyMe · 15-06-2021 7:31am

B2B may quote prices ex VAT but the certainly charge VAT on sales.
So no matter who is responsible for these items, they will have paid VAT.

Happyhouse22 · 15-06-2021 7:46am

Thanks guys - bit lost to be honest.

We have a contract with the builder to supply finished kitchen (including appliances), however now appliances we chose are unavailable and options are choose alternative products or delay the project.

Another suggestion was finding our own products - but I am unclear how this would work in the context of the overall project .

Effects · 15-06-2021 8:14am

Happyhouse22 wrote: »

Thanks guys - bit lost to be honest.

We have a contract with the builder to supply finished kitchen (including appliances), however now appliances we chose are unavailable and options are choose alternative products or delay the project.

Another suggestion was finding our own products - but I am unclear how this would work in the context of the overall project .

That's how we did it. We soured the appliances we wanted and bought them ourselves. Meant we got to choose what we wanted from different suppliers.

No way I'd let someone else pick our appliances anyway.

GrumpyMe · 15-06-2021 8:20am

Most "builders" would have relationships with particular suppliers and will obviously recommend or at least refer you to them. They may have some skin in the game. Those suppliers would (must) charge VAT to the "builder" on the sale. The "builder" in time would charge you, the client, VAT on the eventual supply of the goods to you.
If the items you want are not available from the recommended supplier then they need to be sourced elsewhere. If the price is different, you the end user is going to, one way or another, foot the bill. The "builder" will pay VAT to the new supplier and will charge you VAT on the supply/fit of the goods.
Nothing really changes except the price, including VAT, to you the end user.
If you want to source the items and give them to the "builder", presumably he will just charge for fitting. You will pay VAT to the item supplier on the value of the goods and VAT to the "builder" on the value/cost of fitting.
VAT is set up in such a way that you, if you don't misbehave, will pay VAT.

Happyhouse22 · 15-06-2021 9:30am

Thanks guys, couldn’t get my head around it for a bit but think I have it now.

Do Powercity/DID/Harvey Norman sell Ex Vat?

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