Hotel quote did not include VAT

Lewis_Gerolemou

A word of warning if you intend to stay in London Hotels, make sure you are quoted VAT inclusive price. Stayed at a 5 star following wedding reception, quoted £225 but asked to pay £270. I pointed out that unless the quote was for a business the quote should include VAT. They had my card so I had no choice but to pay. The hotel's website says "total price" but a click on "price details" in tiny blue letters reveals "Additional charges 20% VAT". I have asked hotel for refund but no reply so I complained to my local Trading Standards who, apparently, can take criminal proceedings against businesses that make misleading claims/statements.

A rival hotel group quite clearly state on their website in highlighted red letters "our prices do not include VAT". Hyatt hotels display no such notice.

antrobus

You were right to bring the matter to the attention of Trading Standards.

Displaying prices in hotels and guesthouses

If you offer accommodation as part of a business, you must meet the following legal requirements. The price information that is given for accommodation and other services must not be misleading. Price information can be given in many forms, such as verbally, on the internet, on an advert or in a brochure and on an invoice or statement of terms. Any misleading action (such as showing a lower price than that charged) or a misleading omission (such as not including a tax or service charge) can lead to a possible prosecution or injunctive action being taken. These requirements are found in the Consumer Protection from Unfair Trading Regulations 2008.

That's from Gloucestershire Trading Standards - http://www.tradingstandards.gov.uk/cgi-bin/glos/bus1item.cgi?file=*badv010-1111.txt - but I can't imagine that the law is that different in Gloucestershire. They also mention that it "could also be breach of contract", so it might be also worthwhile complaining to your credit card company that you were 'overcharged' by the hotel in question.

agrinnall

I think Hyatt are being a bit naughty. The information below is copied from DirectGov, I don't see how Hyatt can argue that they are aiming only at businesses.

If they won't refund the money then shop them to HMRC.

Prices in advertisements, catalogues and price lists


Products advertised in outlets, magazines, on the internet, or shown in catalogues, price lists and other literature may be aimed at the consumer, businesses, or both. If they're only meant for the general public, they'll show you a price including VAT. This is a legal requirement.
If they're aimed at both consumers and businesses, they’ll usually show a VAT inclusive price, but may also show a price without VAT. The VAT inclusive price must be given equal importance, but read carefully to make absolutely certain you understand what price you'll pay.
Prices aimed only at businesses are usually shown with no VAT included. VAT will be charged on top of the price shown.
VAT on bills and receipts


Most retail prices on bills and receipts include VAT - it is not shown separately. However, some may also show the VAT element as a separate line. This doesn't mean you're being charged extra - it just shows how much tax is included in the price.
Invoices from VAT-registered suppliers (like most builders, or painters and decorators) must show a separate amount for VAT. They must also show the nine-digit VAT Registration Number of the business.

vuvuzela

Which website is it that you booked from that doesn't include VAT ?

isplumm

vuvuzela wrote: »

Which website is it that you booked from that doesn't include VAT ?

I was wandering whether it might have been a us site - that wouldn't show the tax???

Mark

moonrakerz

antrobus wrote: »

Any misleading action (such as showing a lower price than that charged) or a misleading omission (such as not including a tax or service charge) can lead to a possible prosecution or injunctive action being taken. These requirements are found in the Consumer Protection from Unfair Trading Regulations 2008.

HMRC say this:

"Prices aimed only at businesses are usually shown with no VAT included. VAT will be charged on top of the price shown."

Not quoting VAT is not an offence - The hotel may well get most of its trade from Business customers, their quotes are entitled to reflect this.

hcb42

it is quite common with London hotels, and even a lot of conference hotels, I wont name any though.

my hubby got caught with it a few years back booking a london airport hotel and he booked via superbreak, which is very much a leisure driven agent.

I noticed it right away of course, but was too late then!

antrobus

moonrakerz wrote: »

HMRC say this:

"Prices aimed only at businesses are usually shown with no VAT included. VAT will be charged on top of the price shown."

The OP is not a business. HMRC do tax; consumer protection is somebody else.

moonrakerz wrote: »

Not quoting VAT is not an offence -

Trading Standards state that it is.

If you offer accommodation as part of a business, you must meet the following legal requirements. The price information that is given for accommodation and other services must not be misleading. Price information can be given in many forms, such as verbally, on the internet, on an advert or in a brochure and on an invoice or statement of terms. Any misleading action (such as showing a lower price than that charged) or a misleading omission (such as not including a tax or service charge) can lead to a possible prosecution or injunctive action being taken. These requirements are found in the Consumer Protection from Unfair Trading Regulations 2008.

For the avoidance of doubt, that is a direct quote from the Trading Standards website.

scheming_gypsy

The site says:

1 The rate shown is the lowest available average nightly rate from the rates you have selected. Some rates require full prepayment and are subject to special cancellation penalty.
2 Additional taxes and charges may apply.

when doing a search for hotels and prices.

Then when you go to book it says

Total Per Room 2260.00 GBP Additional Charges 20.000 Percent tax
Total After Tax 2712.00 GBP
https://www.hyatt.com/hyatt/reservations/commonGuestInfo.jsp?xactionid=13264a92c7b&_requestid=439056

So it does tell you that there are additional taxes and then tells you how much when you go to book it. The website is clearly American though, which would be why it doesn't list is as excluding VAT - it's not primarily aimed at the UK market,

pendulum

Which website did you use to book OP? I also tried the Hyatt.com website and it does include the 20% in the final price at the end, but you said you needed to click somewhere to see the final price so that makes me think you didn't use that site to book?

texranger

Lewis_Gerolemou wrote: »

A word of warning if you intend to stay in London Hotels, make sure you are quoted VAT inclusive price. Stayed at a 5 star following wedding reception, quoted £225 but asked to pay £270. I pointed out that unless the quote was for a business the quote should include VAT. They had my card so I had no choice but to pay. The hotel's website says "total price" but a click on "price details" in tiny blue letters reveals "Additional charges 20% VAT". I have asked hotel for refund but no reply so I complained to my local Trading Standards who, apparently, can take criminal proceedings against businesses that make misleading claims/statements.

A rival hotel group quite clearly state on their website in highlighted red letters "our prices do not include VAT". Hyatt hotels display no such notice.

how are they misleading as you clearly stated

The hotel's website says "total price" but a click on "price details" in tiny blue letters reveals "Additional charges 20% VAT".

so they tell you 20% VAT is an additional charge