I've been offered a 'without prejudice' refund for a delayed airport transfer. They've offered the cost of the service before VAT.
I'll accept it, but I'm curious as to the reasons behind retaining the VAT.
If I was to return faulty goods, I'd expect the VAT back.
Does it simplify the accountancy?
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Not really, because they'll be able to subtract the amount of the refund from their declared revenue for VAT purposes, which means what you paid them as VAT becomes theirs. Bit cheeky if you ask me. Wouldn't surprise me if it was something they decided to do, expecting that enough people wouldn't think to question it to make it a nice little earner.
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They're wrong. Tell them you want the lot back or you'll report them to the Revenue.
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yeah - they are cooking the books, the vat man won't like it.
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Generally, there is no VAT on air, rail or bus tickets.
The OP mentions 'refund of a transfer' - perhaps a bus journey.
My guess is the part of the transaction being refunded is not subject to VAT.
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>> They're wrong. Tell them you want the lot back or you'll report them to the
>> Revenue.
I did have the service, it was just delayed by an hour or so (and the journey took nearly twice as long as the flight) so I feel I owe them something.
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VAT on refunds - WillDeBeest
