AO.com hiding the VAT

TraceyB52

I've just purchased white goods from AO.com. Whilst I have no complaints on product, I do have a problem with their price display. They clearly state that prices include VAT. This is true but you only see the VAT after you have entered your address and card details. I understand that this is legal but I believe it to be bad practice and would warn other consumers to be aware of this when comparing the price. I won't be buying through AO.com again as I like to know what I am paying at the outset.

daveyjp

Why am I sesnsing a non existant rant/vent here? Do you mean the price you paid is 20% more than you thought, or that the VAT amount of the advertised price is given on the invoice?

If the latter this is no different to any retailer of white goods. A VAT receipt is produced at the point of sale.

tizerbelle

TraceyB52 wrote: »

I've just purchased white goods from AO.com. Whilst I have no complaints on product, I do have a problem with their price display. They clearly state that prices include VAT.

It does include VAT in the displayed price

TraceyB52 wrote: »

This is true but you only see the VAT after you have entered your address and card details.

So, the price includes the VAT - what's the problem? If you really need to know the price excluding VAT before this point then divide it by 1.2

TraceyB52 wrote: »

I understand that this is legal

it's not only legal but is required by legislation that businesses that sell to end users (consumers) MUST display the price including VAT.

TraceyB52 wrote: »

but I believe it to be bad practice and would warn other consumers to be aware of this when comparing the price.

see above - ao are are B2C company, they have to display the price including VAT. B2B companies can display without VAT but if consumers may see the pricing, they also have to display with VAT.

TraceyB52 wrote: »

I won't be buying through AO.com again as I like to know what I am paying at the outset.

Seems very much that you are cutting off your nose to spite your face. You do know what you are paying from the outset. Are you going to refuse to buy clothes from now on as they don't display VAT on the ticket?

TraceyB52

As I said, until you have paid, the VAT is not visible, therefore the headline value shown when you view the item is not the price you eventually pay. The invoice does show VAT but this is not provided until after the purchase has been completed. It is very different to other sites where I have seen price quoted including VAT which enables you to make a true comparison.

TraceyB52

I'm not cutting off my nose to spite my face. The point I make is valid. The price you view when you first review the item leads you to believe that the price is total cost. Until checkout after your details are submitted the VAT becomes visible. You cannot make a true comparison on price. Of course I understand VAT is applicable, my expectation is that this is part of the total price or is confirmed as excluding VAT when you initially view the item.

tizerbelle

TraceyB52 wrote: »

As I said, until you have paid, the VAT is not visible, therefore the headline value shown when you view the item is not the price you eventually pay. The invoice does show VAT but this is not provided until after the purchase has been completed. It is very different to other sites where I have seen price quoted including VAT which enables you to make a true comparison.

You are wrong. AO say an item is £349 on their website. On the invoice it breaks down this figure to £290.83 plus VAT £58.17 which funnily enough equals £349. How is this not the same?

System

I've just done a trial buy and the cost has not varied

Fosterdog

Can you post a link to what you bought?

Something doesn't seem quite right with your purchase if they added the VAT on after you agreed to buy and entered card details.

I've never bought from them myself but this site would be full of complaints about their misleading pricing if what happened to you happened to everyone.

tizerbelle

TraceyB52 wrote: »

Of course I understand VAT is applicable, my expectation is that this is part of the total price or is confirmed as excluding VAT when you initially view the item.

But that's the law. ao are a B2C business so they display all prices including VAT, they don't have to add "incl. VAT" to the end of each price they display as all consumers pay VAT. The VAT is part of the total price you pay.

B2B sites can display the price excluding VAT but they have to show it as such and if consumers could use their site they should also display the price incl VAT.

If you bothered to read the ao.co T&Cs you'd see section 4 says "All the prices we display includes VAT..."

tizerbelle

I've just checked an old email invoice I received from ao.com and it includes the following for an item displayed at £349.00:

[FONT=&quot][/FONT]
[FONT=&quot][/FONT][FONT=&quot]Delivery Total[/FONT] [FONT=&quot]£0.00[/FONT][FONT=&quot]
Gross Total[/FONT] [FONT=&quot]£290.83[/FONT][FONT=&quot]
VAT @ 20%[/FONT] [FONT=&quot]£58.17[/FONT][FONT=&quot]
Total (including VAT)[/FONT] [FONT=&quot]£349.00[/FONT]


[FONT=&quot]*VAT is included in the price you pay, however we have split it out here for invoicing purposes. [/FONT]

TraceyB52

I think you are missing the point. I have not said that the cost of VAT is not provided on the invoice. I am saying that the price you see when you initially view the item and add to basket does not include VAT only at checkout and after you have entered your details is this visible. I think this is misleading. When I look at the terminology used when viewing the product in the initial stages of purchase the price leads me to think that the price I see is inclusive of VAT.