Should Quotes include VAT ?

[DKninja]

I've just started a web development business and my first client said they had a budget of 2k for an e-commerce project. I went ahead and provided a written proposal and just assumed the 2k was inclusive of VAT. Later someone said I was silly for doing so. Now it's left me wondering if it's normal, in the business to business world, to quote with or without VAT ?

[techie]

My understanding of it is that if you're quoting another business you can quote ex. VAT. But if you are quoting a customer you should quote inclusive of VAT.

I would recommend always stating whether the quote includes or excludes that as otherwise you could run into trouble when it comes to payment.

[belimited]

Just make sure you are VAT registered - otherwise quoting for this can get you into a lot of trouble and the taxman will want to know where his 17.5% is at the end of the year.

[stratigen]

Hi,

You can quote inc. VAT or exc. VAT.

That said, you must explain to the Client (i.e. state if the price is inc. or exc.) which approach you're adopting.

Clearly, you can't quote inc. VAT if you're not VAT registered.

Indeed, if you're not VAT registered you shouldn't mention VAT at all ... just put XX pounds.

If you are VAT registered, you should also include your VAT number on the invoice.

Regards

SJ

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