costco - why do they show the price with & without vat?

mkgirl1981

I don't really understand why they show the two prices when you pay the vat anyway
can anyone shed any light?

Cornwall_Girl

VAT registered companies can claim back the VAT on purchases, so really for them the purchase price is without VAT. It's annoying when as a normal person you see what you think is a good deal, then you realise you have to add on 20%, but it does serve a purpose for businesses.

badlass

I would think as they cater for VAT registered companies and joe bloggs they show both applicable prices?

Lx

mkgirl1981

ahh I see
thanks

ic

Costco is primarily a trade store, that are also open to the public. Weekdays they have trade only sessions in the morning.

If a business primarily deals with the public (e.g. any high street store), they must show the inc-vat price with prominence over the ex-vat price (and aren't required to display the ex-vat price), if they deal mainly with trade don't have to show the inc-vat price at all.