It would appear HMRC are not willing to answer common sense questions where their guidance and rules are clearly laughable .
I note hmrc does not post any critique or negative response, is it vanity or simply they dont have a sensible answer.
Very simple questions arising are.
1- How can you have a situation where a customer who pays for site fees for 2020 in Full in January pays more than someone paying Monthly for exactly the same when the former pays VAT @20% for the year, and the latter pays six payments @20% and six @5% ?.
2- How can there be two rates of VAT for the same facilities and services for the same period from the same supplier ?
3- Since when did the Supplier determine VAT rates at their whim, and clearly have no incentive or obligation to ensure overpayment is refunded ?
4- How does the Customer know if the money has been reclaimed and not repaid ?, and how does the HMRC know if such funds were repaid.
4- Why can the customer not demand the monies are reclaimed and repaid ?.
Please do not refer to Rules, common sense please.
CMA Contract cancellations and refunds due to Covid 19, Updated 28 August 2020
A previous poster asked the question about the reduction in VAT to 5% from July and customers entitlement to refund having clearly overpaid VAT.
How does the decision to refund overpaid VAT rest with the supplier, either VAT is payable or it is not, also the consumer can not find out if the supplier has reclaimed and simply kept it ?
A clearer issue is that Caravan Parks Closed for 103 Days, the Government via the statement issued by the Competitions and Marketing Authority have made it clear that in Law the Contract was Frustrated, therefore a refund falls due for that period. That is the Governments stance not the Consumers. Why then have refunds not been given of the 20% VAT overpaid for that period.
It seems HMRC are failing to ensure customers only pay VAT on what is required in Law why, and to whom do we complain