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Hotel quote did not include VAT

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  • Pricing (as enforced by TSS) falls under the CPRs. If a business offers a product to consumers (can be as well as offering to business customers) then prices must be inclusive of VAT. A failure to do so is a criminal offence, in breach of Reg. 9 of the CPRs, for a contravention of Reg. 5 (commonly known as a misleading action).

    If the trader makes it clear that they ONLY sell to business customers, then they can show prices which do not include VAT.

    HMRC have no input into how this legislation is enforced (although it is technically possible for them to prosecute under it as it is common informer legislation). As George says, their website is only guidance for traders, not legislative instruction.
  • Apologies for not getting back. I was given the price by the person who booked the wedding party - which is obviously not a business. He was quoted £225 and that was what I expected to pay. After our stay I checked out the Hyatt website to see how they quoted prices. A list of rooms rates says "TOTAL PRICE", I don't see why one would expect VAT to be added to a TOTAL PRICE, it's at least misleading if not a trick to present a price in this manner in my opinion. I have complained to Trading Standards, they said they will investigate and if necessary contact the hotel.

    Today I received an e-mail apology from Hyatt Hotels with an offer to refund my £45 plus £45 "sorry" money. I found it hard to believe that an international hotel goup would not be aware of or have access to UK consumer law. Well done Hyatt Hotels, I hope you amend your website accordingly.
  • Good result!
    One important thing to remember is that when you get to the end of this sentence, you'll realise it's just my sig.
  • Lewis_Gerolemou
    Lewis_Gerolemou Posts: 139 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    edited 14 September 2011 at 7:30PM
    I've just check my account and Hyatt have refunded £90. Thank you Hyatt for being so honest, it's nice to know that even the "big boys" are prepared to admit when they are wrong. Just to be clear though, I phoned my cousin (who was paying for the wedding) to ask him what the concession tariff was. His wife phoned the hotel, as far as I know she did not refer to the contract, and was told £225. Had she been told plus VAT I'm sure she would have passed that on to us, I intend to ask her when I see her next week.
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