Problem with VAT from estate agents

[Ladylan]

I have had some repairs done to my property. The three separate companies who did the works have invoiced (including VAT) my estate agent who is letting the property for me.

He has now sent me an invoice with all these bills on in full and then added his own VAT which means I am paying the 20% VAT on all bills twice.

Is this right? he tells me it is correct and he has to charge the VAT as he is registered, but surely he should show the bills from the companies on his invoice with the VAT separate from the actual costs therefore only charging the VAT once. As it is I am paying VAT on the VAT! I'm sure this can't be right.

[Carryon Regardless]

He only pays the net of any bill as he offsets the vat paid as a vat reclaim.

That is where he pays £1,000 + £200 vat he will reclaim the £200 portion.

[Grampa]

If the agent has had the the works done the total of the full bills will be deducted from the rental income and the agents commission will have vat added as well.

Some agents also charge a fee to do works on top of the cost for the works.

To give a better answer you need to copy the statement onto the site

[Guest caravanj]

Your agent, like many who don't understand vat, is wrong. Your agent should total the bills MINUS vat, then he should add on his commission & then add vat to that total.

E.G. 1st bill £1000 + vat @ 20% = £200 total £1200

2nd bill £1000 + vat @ 20% = £200 total £1200

3rd bill £1000 + vat @ 20% = £200 total £1200

Your agent's bill should be £3000 (not £3600) + say commission of 10% = £3300 + vat @ 20% = £660 total £3960

Your agent will then claim a vat refund of £600 & make a vat payment of £660 which is the £600 vat charged by the 3 firms + the £60 vat which the agent should charge for his £300 commission.