Refunds and VAT

Elessar

Does anyone know anything about this? If you claim a refund and it is offered willingly by a retailer, are you supposed to get all your money back or just what you paid minus VAT?

I recently took something back to M&S under their 30 day policy, there was no quibble but I was only given the price of the item less VAT back.

I am considering doing the same for another item in another retailer, but this time returning under the distance selling directive (bought online). I am concerned because the VAT for this particular product is over €300, and I don't want to be that much out of pocket!

Were M&S right? Are retailers allowed to not refund you the VAT?

IrishTonyO

Elessar wrote: »

Does anyone know anything about this? If you claim a refund and it is offered willingly by a retailer, are you supposed to get all your money back or just what you paid minus VAT?

I recently took something back to M&S under their 30 day policy, there was no quibble but I was only given the price of the item less VAT back.

I am considering doing the same for another item in another retailer, but this time returning under the distance selling directive (bought online). I am concerned because the VAT for this particular product is over €300, and I don't want to be that much out of pocket!

Were M&S right? Are retailers allowed to not refund you the VAT?

No you are to receive the full price back

EKRIUQ

No they weren't right in this, they should of given you a full refund and they claim back the vat as a refund.

alwaysadub

No-if you paid VAT on it,you should get the VAT refunded back too.
Never heard of anyone doing that before-i'd be going back asking to speak to a manager if i was you..

mdebets

M&S were right. They didn't have to give you anything back (I presume the good wasn't faulty). They can make up any rule they want (like giving you only back the price of the goods minus your age in Euros minus the day of the month in Euros).
If you give however something back, because it's faulty or because of the distance-selling rule, they have to give you back the full amount you paid for it, including the VAT*.

* Note: If the good is faulty, they can of course also replace or repair it.

IrishTonyO

mdebets wrote: »

M&S were right. They didn't have to give you anything back (I presume the good wasn't faulty). They can make up any rule they want (like giving you only back the price of the goods minus your age in Euros minus the day of the month in Euros).
If you give however something back, because it's faulty or because of the distance-selling rule, they have to give you back the full amount you paid for it, including the VAT*.

* Note: If the good is faulty, they can of course also replace or repair it.

Suggest you check out consumer law before you make posts! Or show me where M&S say we will refund minus the vat?

mdebets

IrishTonyO wrote: »

Suggest you check out consumer law before you make posts! Or show me where M&S say we will refund minus the vat?

The consumer law is clear. You don't have a right to a refund, just because you changed your mind (that's how I read the OP, that the good wasn't faulty, but he just didn't like it). So whatever M&S gives is in addition to the law, so they can give what they want.

IrishTonyO

mdebets wrote: »

The consumer law is clear. You don't have a right to a refund, just because you changed your mind (that's how I read the OP, that the good wasn't faulty, but he just didn't like it). So whatever M&S gives is in addition to the law, so they can give what they want.

Unwanted items can be returned for exchange or full refund provided they are returned within 35 days of purchase with a valid receipt or parcel summary document.

http://www.marksandspencer.com/Returns-Policy-Returns-Refunds-Help/b/43698031

Victor

What were the actual amounts involved? The VAT rate may have change from 21.5% to 21% resulting in the 0.5% not being repaid.

calex71

I don't get why they would refund a product but not the VAT

I mean surely it's no skin off their nose as they can get a vat refund too ? This would benefit the taxman not M+S if they didn't refund VAT, as they could potentially sell the goods again and pay the Taxman another 21% unless.......... hmmmmm :rolleyes:

JohnC.

Victor wrote: »

What were the actual amounts involved? The VAT rate may have change from 21.5% to 21% resulting in the 0.5% not being repaid.

If there is a refund being offered, it is the amount on the receipt which matters, regardless of VAT changes or not. Same as if the price of the item changed in the meantime.

wmpdd3

M&S had a 'no vat day' on furniture a couple of months back, does it have anything to do with this?

Does your receipt have a price, than another discount that you may have forgotten about below it?

ttm

Checkthe price of the item at the time you took it back. If it was 20% cheaper than when you bought it I suspect you got the price the item was currently being sold for, if you didn't have a reciept that might be what happened. M&S used to let you take any stuff back that was their's orignally, my wife used to work on returns in the UK with them years back and you could take back a Christmas present only to find it had been bought 3 years earlier, you got your money back at the price the item was last on sale which could be much less than the original price. How they handle returns now I can't say for sure. On the other hand if you have the reciept I seem to remember you get what you paid for it provided you don't wait years before returning it.

Elessar

It was an item of clothing that someone else bought, I was only returning it for them. I asked the person - the item was €35 (and on the receipt) but turns out she was only charged exactly what I was given in refund (€34.xx). Maybe they had a vat-free day on clothing or something.

Anyways, that's cleared up, I should get the original amount in all other refunds!

the groutch

if my maths is right it was 15c difference, and afaik M&S have the €35 price displayed on the item, and then discount the 1/2% vat on the reciept so people can see it, at least they're being transparent about it, whereas I expect there MAY be other retailers who are pocketing the 1/2% for themselves

Max Power1

In case of change of mind, you have NO legal right to any sort of redress.

If the item is faulty, you are will within your rights, under the Sale of Goods & supply of services act 1980 to demand a full refund (including vat) of any and all amounts paid.

MOH

Was it 34.86?

It may be that the item was originally priced at €35 including VAT at 21.5%, but the the time it was sold the VAT rate had dropped to 21% but they hadn't got all their systems updated. So while they only charged VAT at 21%, the receipt showed the amount including 21.5%.

edit: Doh! - hadn't read the groutch' post

ttm

MOH wrote: »

Was it 34.86?

It may be that the item was originally priced at €35 including VAT at 21.5%, but the the time it was sold the VAT rate had dropped to 21% but they hadn't got all their systems updated. So while they only charged VAT at 21%, the receipt showed the amount including 21.5%.

edit: Doh! - hadn't read the groutch' post

Don't worry your post made it clearer

Mr. Incognito

Hi there.

Legally they did not have to give you the refund unless the good was faulty. If it was faulty you are entitled to a full refund including the VAT.

If you have returned the good under their 30 day, you do not have a legal entitlement to the VAT back.

They are most likely pocketing the VAT but hey, that's life. Caveat Emptor.

Elessar

Thanks all for the replies. I'm well aware of what my rights are. I was simply asking if leaving VAT out of refunds is the norm now (and you'd have to reclaim it yourself or something). Thankfully I was wrong.

I think MOH explained exactly what happened. Makes the most sense. I know a large chain like M&S would not deliberately pocket VAT like that.

the groutch

Mr. Incognito wrote: »

They are most likely pocketing the VAT but hey, that's life. Caveat Emptor.

no they aint, surprised to see a mod make such wild accusations

Elessar wrote: »

I I asked the person - the item was €35 (and on the receipt) but turns out she was only charged exactly what I was given in refund (€34.xx)

ttm

:rolleyes:

Max Power1 wrote: »

In case of change of mind, you have NO legal right to any sort of redress.

If the item is faulty, you are will within your rights, under the Sale of Goods & supply of services act 1980 to demand a full refund (including vat) of any and all amounts paid.

Mr. Incognito wrote: »

Hi there.

Legally they did not have to give you the refund unless the good was faulty. If it was faulty you are entitled to a full refund including the VAT.

If you have returned the good under their 30 day, you do not have a legal entitlement to the VAT back.

They are most likely pocketing the VAT but hey, that's life. Caveat Emptor.

Why not read Marks and Spencers Returns Policy before getting all legal.