In message , gb
writes
Last week I ordered some double glazing units £2060 inc VAT.

So what should I pay when I go pick them up next week ???

The price quoted, even thou it does say inc VAT, or at the new VAT
rate.

The VAT rate to be used is based on the supply date or 'tax point'.
There are exceptions but the general rule is that the tax point occurs
on completion of supply or completion of a service.

Regardless of how your supplier calculates the tax point, it definitely
couldn't have been before you ordered them. According to HMRC guidance
as that would have been after the 18th November, the tax rate depends on
the invoice date being pre/post 1st December. This is the first time
I've ever known an invoice date to influence the tax rate, as opposed
the tax point.

So, if the supply point is after 18th Nov, and the invoice date is on or
after 01 Dec, it must be charged at the new rate.

See page 2 of http://www.hmrc.gov.uk/pbr2008/vat-guide-sum.pdf

If they do go for the new rate or old, I would tend to think that from a
purely legal perspective, they quoted you an "Inc Vat" price, and could
therefore hold you to it (and in doing so increase their actual take).

One little question to ask yourself, if VAT had gone up rather than
down... how strongly would you have wanted to hold them to the inclusive
price rather than the exclusive price to which you would clearly now
prefer ;-)

Hth
Someone