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7 Aug 20, 02:35 PM |
#1
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Excited about Disney
Join Date: Nov 15
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Am I being petty?
Next week, we have a mini break/road trip planned.
We currently have two nights at a pub, in Northumberland booked, using booking.com When I was checking the bookings, I noticed that they were charging VAT at 20%. I assumed this would be changed when we paid, but contacted them to double check, and they have told me that the VAT rate applies to when the booking was made, and we will be charged at 20% I don't see how this can be correct - they have told me they will issue an invoice when we check out, so the tax point will be August, and should have 5% VAT ? The total cost is £576 - last year, on the exact same nights, we were staying at HRH, which cost us £570 ! I think this is adding to my irritation. Part of me is saying, we were happy with £576 when we booked, but part of me (the louder part at the moment!) is telling me that I'm being ripped off! Also, the tone of the two communications I've had with them hasn't been pleasant. Would it annoy you, or should I just let it go? |
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7 Aug 20, 02:43 PM |
#2
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Excited about Disney
Join Date: Jul 10
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I remember, when the VAT was changed, reading that it was based on the booking date not the date of the stay as we are in the same situation (but not going until Christmas).
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7 Aug 20, 02:46 PM |
#3
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Imagineer
Join Date: Nov 14
Location: West Midlands
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I'd feel a bit miffed, especially if the tone of the emails was rude but whether I cancelled would depend on how much I wanted to stay at that particular hotel. No point in cutting your nose off to spite your face, as my dad would say!
The VAT reduction was discussed over on the current issues thread and my take on the tread is that the rate of VAT is set on the date that the booking was made. Although, I've not done any independent research as it doesn't apply to me. |
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7 Aug 20, 02:47 PM |
#4
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Imagineer
Join Date: May 03
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I think you're correct on a tax point perspective.
However, business have no obligation to pass the VAT saving onto the customer, and this was broadly acknowledged by the government at the time. So, I suspect you will find the pub is keeping their gross price the same, in order to earn extra income (to help them offset the period they were forced to be closed), so the net price you'll pay will have gone up and the VAT reduced. |
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7 Aug 20, 02:49 PM |
#5
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Imagineer
Join Date: Nov 07
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VAT is always rated at the time of the transaction ie booking, if it had gone up to 25% you wouldn’t be asked to pay the extra. I‘M afraid that’s life and not worth getting stressed about - more important things worrying me at the moment
Edited at 02:53 PM. |
7 Aug 20, 03:39 PM |
#6
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Guest
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I also believe you are correct in terms of what is the VAT date, assuming you are not paying in advance it should be the date you pay not the date of your booking.
However, there is no obligation of the hotel to pass the lower VAT rate onto customers. |
7 Aug 20, 04:00 PM |
#7
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Thread Starter
Excited about Disney
Join Date: Nov 15
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Thanks all - you've made me feel better about it
I think I'm thinking about it differently because it's booking.com and free cancellation, so in my mind it's not really booked yet. I still don't really understand how they can issue an invoice dated August, and used a July VAT rate. though - I get that they could change the Net, so that we pay the same Gross, ie not passing on the VAT saving, but they're not saying that this is what they're doing. We may still cancel, unfortunately the emails I've had don't suggest a warm and friendly welcome , but at least I know that they're not trying to fiddle me now ! |
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7 Aug 20, 04:27 PM |
#8
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Guest
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7 Aug 20, 04:35 PM |
#9
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Apprentice Imagineer
Join Date: Mar 17
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I’m almost certain that the vat rate is determined on the applicable rate when making your booking not based on your dates of stay/travel.
I have a center parcs booking for November which I booked just before the tax reduction and I will still be charged 20% on that. It’s unfortunate, but just the way it goes. The extra money off would’ve been nice - but I was happy to pay it when I booked it so can’t complain too much. Are there any rooms left? Could you use your option of free cancellation to cancel and rebook if a cheaper price is being offered now? x |
7 Aug 20, 04:40 PM |
#10
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Thread Starter
Excited about Disney
Join Date: Nov 15
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No, nothing has been paid or invoiced. Think this is why I’m confused / miffed. I could understand it if I’d been invoiced back in July, but they’re going to issue an invoice when we check out? Anyway, I’m probably over thinking it now - need to move on and enjoy some sunshine !
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