Consumer rights explained: My contractor isn’t Vat-registered - what should I do?

Q: I’m seeking advice on a consumer issue after storm-related roof repairs. A contractor quoted €500 but ultimately charged €1,670 due to additional damage. My insurer refused to reimburse €312 (VAT), stating the invoice had an invalid VAT number. Despite repeated requests, the contractor resent the same incorrect invoice. Checks on EU and Irish VAT databases suggest the company may not be VAT-registered. Revenue and the CCPC have not resolved the matter. What options do I have to recover the loss, and how can consumers protect themselves from potentially non-compliant contractors?

Paul, Meath

It can be very distressing to run into problems like this, especially when you have already had to deal with a storm-damaged roof. From your question, it seems you have already tried to get in touch with the trader multiple times to correct the error. I also note that you have researched EU and Irish VAT databases and suspect the company may not be VAT-registered. If that is the case, the trader should not have charged VAT on your invoice, and you would be well within your rights to demand the VAT amount back.  

If attempts to get a refund or a correct invoice are unsuccessful, you have the option of taking the complaint to the Small Claims Court, which deals with claims of up to €2,000. This allows you to resolve certain disputes with businesses without needing a solicitor. Complaints to the Small Claims Court cost €25. Make sure you engage with the court registrar and check the Companies Registration Office website at the beginning of the process so that you have the exact, legally correct company details. This is essential to ensure any potential claim can be enforced.

You mention that Revenue and the CCPC have not resolved the matter. As the CCPC is not an ombudsman, it can’t take action on an individual consumer’s behalf. However, consumer complaints are a very important source of information for our consumer protection teams.   

For consumers who are engaging traders to homebuilding and home improvement traders, I would advise you make sure you know exactly who you’re dealing with. Has the company provided you with their name, address, phone number, email address and company number?

I know that when it comes to needing a remedy for a problem that requires immediate attention, such as weather damage, consumers can feel under pressure to hire someone quickly. However, I would always resist the urge to rush into this process as it can lead to headaches down the line, such as the one you’re experiencing now. Don’t settle for the first quote you receive. Get at least three quotes to compare prices and services.

When you settle on the right trader, you should receive a contract that will outline the scope and timeline of the work, a payment schedule and any other critical details. This can be a big help against any potential disputes.

When you do decide to hire a trader to carry out a service, I would also recommend exercising caution when paying deposits, particularly if the amount requested seems excessive. Always get the deposit terms and conditions in writing before making a payment and always pay by credit card or debit card, not by bank transfer or by Revolut.

I would agree on a payment plan for different stages of the work and hold back the final payment until you’re satisfied that you’re happy with the work.