Price excludes VAT

RobertinHerts

mo786uk wrote: »

The legislation quite clearly states

"where a trader indicates that any product is or may be for sale to a consumer, he shall indicate the selling price of that product in accordance with the provisions of this Order."

“selling price” means the final price for a unit of a product, or a given quantity of a product, including VAT and all other taxes;


What you might find though is that the authroities will turn a blind eye to builders merchants and the like

Intersting, thanks, however I wouldn't have considered this one to be a 'Builders merchant' when I walked in.

mo786uk

RobertinHerts wrote: »

Thanks for that much appreciated. Shame HMRC couldn't provide a link on their website:(

Article 4 doesn't actually define 'Selling price' and whether or not VAT must be included for non-businesses, however...

I then read the Explanatory note which explains that this legislation implements Directive 98/6/EC of the European Parliament and of the Council (OJ No. L180, 18.3.98 p. 27) on consumer protection, and goes on to say 'Article 1 defines the selling price as the final price including VAT and other taxes'.

This would lead one to think that business selling goods to consumers must show the VAT inclusive price.

Thats correct. The start of the legislation defines the selling prices as including VAT

It later goes on to say the selling price must be clearly stated where the business sells consumers.

Therefore the price they show should include all taxes.

The_Pedant

Not sure at what level the following text from that act will apply:

The requirement in paragraph (1) above shall not apply in respect of:
(a) products sold from bulk;

I must admit I did read section 4(1) & think that seems rather straightforward. However by claiming the boxes are bulk, would they simply side-step the pricing order?

mo786uk

IIRC the bulk applies to items that are sold by weight - they have to be priced by kilogram or whatever is relevant.

Freddie_Snowbits

I have two price lists. one for comemrcial customers and one for retail. The commercial one excludes VAT in the price nd is clearly indicated. the retail one includes VAT.

The times I have ghad Joe Public telling me they would pay the commercal rate and I then include VAT in their invoice usually has them running back to the retail plan.

neilmcl

OP, what exactly is your issue here. The shop in question isn't trying to mislead anyone, as you stated their prices are clearly labelled "Price excludes VAT".

RobertinHerts

The_Pedant wrote: »

Not sure at what level the following text from that act will apply:I must admit I did read section 4(1) & think that seems rather straightforward. However by claiming the boxes are bulk, would they simply side-step the pricing order?

I don't know if others might, but they sold me one square metre...and added on the VAT afterwards.

RobertinHerts

neilmcl wrote: »

OP, what exactly is your issue here. The shop in question isn't trying to mislead anyone, as you stated their prices are clearly labelled "Price excludes VAT".

I was trying to understand the legal position as is my right I believe.

However, as you ask, I was given a verbal quote which I compared to the other retailers I'd visited. It later turned out that they'd added over £50 VAT subsequently.

If, as it now appears from this discussion, they should be dual pricing, then it seems it's not optional.

Freddie_Snowbits

RobertinHerts wrote: »

I was trying to understand the legal position as is my right I believe.

However, as you ask, I was given a verbal quote which I compared to the other retailers I'd visited. It later turned out that they'd added over £50 VAT subsequently.

If, as it now appears from this discussion, they should be dual pricing, then it seems it's not optional.

No, if I quote for a commercial job, I quote stating VAT is excluded. If you are a private customer, I quote with VAT included. I think you will find this pretty clear on most estimates a gmc quotes.

Why should anyone dual price, as it causes confusion.

mo786uk

Why would a shop only display an ex VAT price?

1) they only sell to trade
2) they want to make their prices appear lower than they are

Some shops that sell to both trade and consumers dual price.

If you specifically quote for a consumer then you of course quote with VAT

It soudns like the above person went to said shop, compared its prices with other retailers but only found out at a later stage their prices didn't include VAT.