Hi,
Following on from another thread I thought a new thread on this subject would be more appropriate.
A couple of days ago I bought a cylinder of pure argon gas from Replacement Services in Huddersfield; the staff there were helpful and friendly and all went well until I arrived home and posted details as to costs incurred; the price of the argon gas and the cylinder deposit I'm happy to pay but .
I politely phoned Replacement Services (SGS) who refused to refund the said VAT but kindly referred me to their head office saying it's their standard practice and always has been.
Yesterday I emailed SGS saying I wasn't happy having to pay VAT on the returnable deposit because returnable deposits are VAT exempt exactly as the forum member quoted to me.
SGS have speedily replied to my email stating SGS is by far the largest independent gas supplier in the country and that the smaller independent gas suppliers who DO NOT CHARGE VAT ON REFUNDABLE DEPOSITS have not spoken to the HMRC in depth as SGS has.
I'm always polite and don't wish to fall out with anyone but here's my reply to SGS;
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Hi Alan,
Many thanks for your speedy reply. Unfortunately I disagree with loaning money like this when the law clearly states VAT is not payable on refundable deposits ; I'll take this further and I'm also discussing this matter on the MIG welding Forum. I've absolutely no problem in paying for the cylinder deposit and for gas but I do have a problem when I become a money lender; I don't dispute you are the largest independent gas company but it's still not right charging VAT on refundable deposits however you wish to dress it up. The deposit covers the cylinder but the VAT is nothing more than a loan in this respect. I mean no offence in any way but I'm not happy especially when you as the largest gas supplier should be leading the way and looking after all aspects of your customers interests.
I'll now open a new thread on the forum and discuss this in more depth with fellow welders. I'll also contact trading standards.
Kindest regards, Colin.
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Charging VAT on refundable deposits when VAT shouldn't be charged is to me totally wrong and I'm now kicking against this practice openly endorsed by the largest gas supplier in the country; just because SGS is so big doesn't mean they can bend the law in this way. Because I've used SGS to purchase gas I've now become a money lender without licence? Do we welders accept this unlawful practice or do we do something about it?
I intend to take this matter further.
Kind regards, Colin.
Following on from another thread I thought a new thread on this subject would be more appropriate.
A couple of days ago I bought a cylinder of pure argon gas from Replacement Services in Huddersfield; the staff there were helpful and friendly and all went well until I arrived home and posted details as to costs incurred; the price of the argon gas and the cylinder deposit I'm happy to pay but .
I politely phoned Replacement Services (SGS) who refused to refund the said VAT but kindly referred me to their head office saying it's their standard practice and always has been.
Yesterday I emailed SGS saying I wasn't happy having to pay VAT on the returnable deposit because returnable deposits are VAT exempt exactly as the forum member quoted to me.
SGS have speedily replied to my email stating SGS is by far the largest independent gas supplier in the country and that the smaller independent gas suppliers who DO NOT CHARGE VAT ON REFUNDABLE DEPOSITS have not spoken to the HMRC in depth as SGS has.
I'm always polite and don't wish to fall out with anyone but here's my reply to SGS;
---------------------------------------------------------------------------------------------
Hi Alan,
Many thanks for your speedy reply. Unfortunately I disagree with loaning money like this when the law clearly states VAT is not payable on refundable deposits ; I'll take this further and I'm also discussing this matter on the MIG welding Forum. I've absolutely no problem in paying for the cylinder deposit and for gas but I do have a problem when I become a money lender; I don't dispute you are the largest independent gas company but it's still not right charging VAT on refundable deposits however you wish to dress it up. The deposit covers the cylinder but the VAT is nothing more than a loan in this respect. I mean no offence in any way but I'm not happy especially when you as the largest gas supplier should be leading the way and looking after all aspects of your customers interests.
I'll now open a new thread on the forum and discuss this in more depth with fellow welders. I'll also contact trading standards.
Kindest regards, Colin.
-----------------------------------------------------------------------------------------------
Charging VAT on refundable deposits when VAT shouldn't be charged is to me totally wrong and I'm now kicking against this practice openly endorsed by the largest gas supplier in the country; just because SGS is so big doesn't mean they can bend the law in this way. Because I've used SGS to purchase gas I've now become a money lender without licence? Do we welders accept this unlawful practice or do we do something about it?
I intend to take this matter further.
Kind regards, Colin.