Charged VAT on deposit but refund excluded VAT

I hired some lights from In and Out for R5000 and paid a R2500 deposit on top of this. The entire R7500 had VAT added onto it however come refund date I was not paid back the VAT portion of my deposit. I think it is a crazy policy to charge clients VAT on the deposit amount and then refund the deposit amount only. This has effectively left me R350 out of pocket. <br> As a client who took good care of the lights it really is a slap in the face to be penalised this way.<br> Should you wish to do business with this company urge them not to add VAT onto your deposit amount otherwise you will lose out.