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scammed for 20% VAT

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Thread replies: 9
Thread images: 1

File: corporate_pepe.jpg (20KB, 350x338px) Image search: [Google]
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Hey biz,

im running a small construction business and have just now noticed that i`ve been scammed for 20% of a construction job.
It is kind of complicated to explain since im lacking the specific lingo in english, but basically how it went down is like this:

I had a construction job running july-october 2016 for around 80k gross, and over the time i wrote 3 partial invoices of ~20k each and a final one of roughly the same sum when the job was finished.

Now, the client had an internal review of my final invoice. For his calculations he now took the base net of the total contract value, (eg 66k) and subtracted the gross sum of the first two invoice payments (20k gross instead of 16k net).
Strangely, the third one was listed as net again, as should have been done for all of them - anyway it was just a big cluster fuck but i didnt twice check it back then. Basically my final invoice was already 60 pages long and the client's review was another 12 pages, so i just looked at the review's cover page which stated that im getting another 10k and i was okay with that.

Now today i was fooling around on my bank account and looking at last year`s income payments and noticed the weird sums.
So i dug into the review and noticed where the reviewer fucked up (might be on purpose because we ended the job on a bad note, might be just an accident),

Now since its an authority that was contracting me, it would be no problem to just tell them and get the 8k back, but i kind of had follow up trouble not being able to pay the supply chain in a timely manner, so im wondering about some methods of claiming my damages without going to court?
In these kind of things you usually have to clarify specifically the damages that you have received, but you can't really put a provable number on a broken relationship to my material dealer.
Ever since i couldn't pay on time i had to swap to a more expensive and logistically worse dealership for construction material.
Whats my line?
>>
>>1796525

What country are you in?

I'm in a trade and have an LLC. I wanna help you but your post is fucking complicated.

It sounds like you are saying that a client shorted you $8k?

I've had a client short me, and firstly this not something you let slip by. You address it right away and politely.

I think my email went something like:

"dear anon, this is XYZ company, on ________ date you were serviced the attached service (see attachment). The total fee came to ___________. To date I have received _______, leaving a remaining bill of ____________. I just wanted to make sure there is no confusion over the bill or the services provided, please call me at ________".

Then just keep going back and forth. Keep it polite. Sometimes these people are dealing with millions and just fucked up a (small) payment. My brother got overpaid $10k on a job and had to call the company to send them some money back.

But honestly, you need to be very very very sure they are trying to fuck you before going all legal mode. Because if it was a mistake, and you threaten to sue they are gonna blast your business.

Just get them on the phone.
>>
>>1796525

Oh, and my story is kinda funny

> guy shorted me $100 on a job
> no big deal
> keep sending emails
> he keeps responding "check is in the mail"
> after my 5th email I decided to send him a threat email
> told him I would lien his home if he did not pay
> He puts a check in the mail 2 weeks later

For some retarded reason some people think they can get away with cheating people. Which is like driving into oncoming traffic, it's just a matter of time before you get crushed.
>>
>>1796525

For future reference here is how you should handle contracts:

1) Go over the job in DETAIL with the customer, take your sweet time and look at every little thing they want or dont want, take notes
2) Write up a very detailed and accurate contract for everything
3) Get them to sign and get 20% down (or more it may depend on your industry)

As the job progresses if things change, write up a "change order" for the additional costs and have them sign it.

At the end print up a final contract that includes the remaining balance plus all the change orders.
>>
>>1796525

One more thing, Take a lot of pictures. Before and afters, materials used.

If you do go to court these along with the contracts and any witnesses will be a slam dunk for you. Without pics your case can get very weak very fast.
>>
Country is germany. I'm running my business on a similiar form of a LLC, the liability is capped at 25k€.

Ontopic:
Well the issue is complicated but ignoring the details the situation is like this
Of my total 80k due, i was only paid 72k.

The missing 8k is just a slip up by the client, because he calculated the VAT incorrectly.

There is no doubt by either me, nor the client that i am owed this money.
There is also no doubt that i will be getting the money because of the nature of the contract and the client being an official authority.
In the case that i am informing the client about the slip up, i will be immediately paid the 8k.

My issue is, i was owed this 8k in october.
I just noticed this mistake right now after going through my account.

So the missing 8k cost me around lets say another 2k from loss of earnings.

If i just inform the client of their mistake, i will get my money and probably an apology, but that does not bring me back the 2k his mistake cost me.

Now i am trying to come up with ways of enforcing this 2k without going to court, because that's usually not a feasible option. If it goes as far as going to court, the fees will eat up any potential earnings. There has to be found common grounds on a mutual basis.
>>
>>1796834

Lol no.

You can't ask the client for 2k because you fucked up.

You need to apologize for just noticing now, but remind the client you are owed the money.

Email is best because their response will be admissable in court.

Just send the email then let us know what happens. And dont ask for the 2k that is a mistake.
>>
>>1796864
Well the sad thing is that i'm paying horrendous fees for the most atrocious crap.

E.g. once your yearly revenue exceeds €500k, you are forced to file your vat taxing monthly instead of yearly. There is a 2 weeks extra time to file it, but whenever you miss the deadline you pay a €450 flat fee to the tax authorities, think that happened twice in 2016. These leeches are leaving you no air to breath. I have to squeeze the last bit out of every deal i do to make the cut. German fiscal laws really do have business owners in a stranglehold..
>>
>>1796915

Sucks mate.

Euro socialism needs to end.

I have an LLC and thanks to tax deductions I paid almost nothing.
Thread posts: 9
Thread images: 1


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