Price excludes VAT

paddyrg

If the company generally sell only to trade, do not advertise retail, do not have an obvious store front, etc., they probably assume when you come in that you are in trade - how would they know otherwise? Traders do not have special cards saying they are professional tilers and so should be quoted ex-VAT, similarly the odd retail punter who discovers the place doesn't look different and isn't turned away at the door, they are just advised that the business is aimed at trade and so prices are ex-VAT. Does the shop make an effort to advertise retail, do they have A-boards to catch the public eye, or are they genuinely and reasonably just expecting trade custom?

mo786uk

paddyrg wrote: »

If the company generally sell only to trade, do not advertise retail, do not have an obvious store front, etc., they probably assume when you come in that you are in trade - how would they know otherwise? Traders do not have special cards saying they are professional tilers and so should be quoted ex-VAT, similarly the odd retail punter who discovers the place doesn't look different and isn't turned away at the door, they are just advised that the business is aimed at trade and so prices are ex-VAT. Does the shop make an effort to advertise retail, do they have A-boards to catch the public eye, or are they genuinely and reasonably just expecting trade custom?

Its an interesting point....

I spose the question is do they bother to ask the customer if they are a consumer or not - I dont know the ins and outs of VAT but I guess there would be a different procedure for ex Vat prices

i.e trade is sold ex VAT and you cannot sell to consumers ex VAT - what would HMRC say if they sold to consumers ex VAT?

As far as I can see the law is fairly clear, if you sell to consumers you display VAT

If you dont want to sell to consumers you make it clear.

shaun_from_Africa

i.e trade is sold ex VAT and you cannot sell to consumers ex VAT - what would HMRC say if they sold to consumers ex VAT?

Whether it's a trade or retail outlet, and trade or consumer purchasers, the goods are still sold with VAT being charged on the purchase, so it's not a case of being sold "ex VAT".
The only difference is that trade outlets can display the selling price exclusive of VAT, although this will still be charged when the sale is made.

derrick

The ASA seem to agree with the OP, example from ASA adjudications HERE.

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paddyrg

All buyers pay the same price, ie with VAT - it is just that most businesses have a mechanism to reclaim the VAT from HMRC (actually it is offset against the VAT they have to charge, and has the effect that the end consumer only pays VAT once, not on every deal up the supply chain! Trade or not you would pay exactly the same over the counter on the day, so you have assuredly not lost out in any way.

The tests to decide this for sure one way or the other would be interesting, but a spirited defence would look at things like are they trying to appeal to consumers? Do they have a glossy showrrom area? Ads aimed at the public? A-boards? Or is it more of an unwelcoming shed hidden deep in an industrial estate?

Some busiinesses will actively prefer trade custom to save those pesky low-volume customers demanding their consumer rights which apply only to consumers (and are part of why you pay more retail than trade!).

But rest assured you have paid the exact same as any other customer that day, everyone pays the extra 20% VAT!

Tiddlywinks

OP - Why use so much time and effort on this issue?

You know the prices shown are 'ex vat' and so you then know that you have to add that element of tax on top to reach the total payable.

If you like the end price then pay it, if not then go elsewhere.

If you think there has been a breach of legislation then report it - but really, is it that much of a problem? Really?

RobertinHerts

Tiddlywinks wrote: »

OP - Why use so much time and effort on this issue?

You know the prices shown are 'ex vat' and so you then know that you have to add that element of tax on top to reach the total payable.

No, actually I hadn't realised that the price was ex VAT because the salesman never mentioned it when providing the quote. It was too late when I discovered what had happened.

I note the ASA judgement which says a notice must be prominent. I looked yesterday, there was no such notice and the writing which did say 'ex VAT' was in small print.

BlueAngelCV

RobertinHerts wrote: »

No, actually I hadn't realised that the price was ex VAT because the salesman never mentioned it when providing the quote.

But in your original post you say

A store has 'Price excludes VAT' close to most prices

RobertinHerts

BlueAngelCV wrote: »

But in your original post you say...

Not contradictory. I discovered this when I was passing yesterday and popped in to see if there was a prominent notice anywhere.

Being a retail establishment I hadn't expected anything other than VAT inclusive prices.

Mark_Hewitt

If they sell to ordinary customers too they could at least display the VAT inclusive price too!

I remember back in the day when retail shops would often having the ex-VAT price displayed in big letters and the inclusive price in small letters, purely to make themselves look cheaper.