Five Guys - VAT issue (Solved!)

Cornucopia

Went to new burger chain Five Guys at the O2 tonight.

Was surprised to be charged 20% more than the menu prices (which aren't cheap). The receipt showed that VAT had been separately added.


I left my details for their manager to contact me tomorrow. Am I right in thinking this is illegal?

Delicious burgers though.

Cornucopia

Looks like the Price Marking Order 2004 requires VAT inclusive prices when a trader sells to the public.

JReacher1

It's because it's an American company and that is how food prices are displayed over there.

However you are right that they should display VAT.

I suspect they get away with it because you pay before you receive your food. Therefore you have agreed to pay the price quoted before you have received the goods. Itll be worse if you ate the burger and then were given a more expensive Bill than you expected.

Still does seem sneaky and I am surprised trading standards haven't been on the case.

browneyedbazzi

A lot of receipts show the VAT as a separate item even if it was included in the menu/sticker price of a purchase.

Some places also automatically add a service charge as well (often referred to in small print somewhere on the menu or with a bit of small print on the receipt saying that is can be taken off the bill on request if you were not happy with the service).

Can you post a pic of the receipt?

Sharon87

Five Guys in the UK? I've never had that issue. VAT does show up on receipts separately, but it adds up to the advertised price on the boards. So you pay your £10 or whatever, which is the advertised price, but on the receipt it may say £8 for the product and £2 VAT.

In the US they advertise the pre VAT rate and add on the VAT at point of sale, so it's different to here

LilElvis

Sharon87 wrote: »

Five Guys in the UK? I've never had that issue. VAT does show up on receipts separately, but it adds up to the advertised price on the boards. So you pay your £10 or whatever, which is the advertised price, but on the receipt it may say £8 for the product and £2 VAT.

In the US they advertise the pre VAT rate and add on the VAT at point of sale, so it's different to here

In the US they add the VAT (actually sales and use tax) separately because it isn't a national tax - it varies not only between individual States but also by county within each State.

Your maths needs some attention - if the net price is £8 then the VAT (@ 20%) is £1.60, making a gross price of £9.60, not £10.00.

Cornucopia

Here's my receipt. As you can see the item prices are as specified on the menu board, but VAT has been added on afterwards.

D'oh - I see what they've done now. The £10 isn't a subtotal at all, it's the subtotal less the VAT.



And I appreciate that the O2 is supposed to be a leisure destination, but the opportunity to be ripped-off seems to be a definite part of the experience.

Been discussed here: http://www.reddit.com/r/london/comments/2ewya5/why_dont_5_guys_include_vat_in_their_prices/

allconnected

Er, VAT hasn't been "added on afterwards"

The prices you show (£6.75, £2.75 and £2.50) add up to £12

The £12 has been broken down into the net price (£10) plus VAT (£2)

You say that the item prices are as specified on the menu board.

The item prices add up to £12. You paid £12. What's the problem?

Allconnected

marliepanda

Looks like every receipt I have ever seen...

Think your maths needs a bit of work Cornucopia

Definitely want to try one of these burgers though. Heard great things!

JReacher1

allconnected wrote: »

Er, VAT hasn't been "added on afterwards"

The prices you show (£6.75, £2.75 and £2.50) add up to £12

The £12 has been broken down into the net price (£10) plus VAT (£2)

You say that the item prices are as specified on the menu board.

The item prices add up to £12. You paid £12. What's the problem?

Allconnected

I think the problem is that the price on the menu boards was not £12.

The OP thought they were paying the menu price but paid £12 as vat was added on later.

globalds

Anyone feel like taking a walk down to the O2 and taking a photo of the menu ?

I would go but Telford is a bit far and it is very cold tonight