VAT question

rachyrach2k

Hi all,

Does anyone know the law on advertising VAT.

Is it mandatory to show the price inclusive of VAT when a product or service is being advertised for consumers (not businesses)?

A quick response would be most appreciated.

Many thanks

JasonLVC

There is no specific laws ounder VAT law but under advertising rules if there is a price shown in a printed advert it must stipulate whether VAT is inclusive or exclusive - otherwise the price will be mis-leading.

Generally, suppliers who sell mainly to other business/trade tend to charge X plus VAT as they assume the buyer can reclaim the VAT, thus the X price is the real cost.

Supplier who sell mainly to consumers directly (or retaillers, shops) usually shows a VAT inclsive price on the basis the customer cannot reclaim VAT.

ASA Guidelines :-
http://www.cap.org.uk/cap/advice_online/advice_online_database/Show+Entry.htm?advice_online_id=407

rachyrach2k

Thank you so much