VAT on refunds

Hairy Mark

New Member
Jul 29, 2011
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Dear all,
I have been through a 10 month struggle with a company which supplied me with goods not fit for purpose. At long last, they have relented and forwarded a cheque in full refund for the goods.

Unfortunately, they have refunded my payment of £398.49 minus the VAT, which was charged at 17.5%, before the VAT rate change. My refund is therefore £339.14.

firstly, is this refund legal and secondly, if a company can refund an individual in this manner, how do I reclaim the VAT.

I have never before been refunded in this way. Any ideas, please?