Online Price - VAT included or excluded

NeilF355

Hi
I recently purchased an item online, the price displayed was the price I expected to pay, I don't recall any screen which said that the price was EXCLUDING VAT or +VAT.
I proceeded with the purchase by credit card, next day I received an Electronic invoice which stated that VAT at 20% had been added to the price I expected to pay.
I have checked on the sellers website, the only reference to prices being EXC VAT was on the last page of their Terms and conditions.


I would have expected to see that sort of statement BEFORE I confirmed payment.


Are there any rules regarding displayed prices and VAT?


When I contacted them they told me that I could cancel the order but as they are the only supplier of the item they have me over a barrel so I have no choice but to proceed.


Many thanks
Neil

unholyangel

If they are trade only they can display prices exc VAT. If however they sell to consumers and they are an UK company, they need to tell you the total price, inclusive of any taxes.

How much are we talking about?

NeilF355

The VAT came to £47 in total. I'm not trade and they were quite happy to sell to me. They are a UK company. Their excuse when I queried it was " All our prices are plus VAT as we deal with customers all over the world and some countries do not pay VAT".


I think that they should clearly display the fact that their prices are "plus VAT" so that any customers can take into account the total price when making a decision as to whether or not to purchase goods from them.


I must admit I thought that the rule was that if the price does not specify that it is excluding VAT in some way then it INCLUDES VAT.

TadleyBaggie

What is the site?

unholyangel

NeilF355 wrote: »

The VAT came to £47 in total. I'm not trade and they were quite happy to sell to me. They are a UK company. Their excuse when I queried it was " All our prices are plus VAT as we deal with customers all over the world and some countries do not pay VAT".


I think that they should clearly display the fact that their prices are "plus VAT" so that any customers can take into account the total price when making a decision as to whether or not to purchase goods from them.


I must admit I thought that the rule was that if the price does not specify that it is excluding VAT in some way then it INCLUDES VAT.

I know you said you're a consumer, but are they a trade only website? What I mean by that is do they say they are wholesale/trade only on their site or in the T&C's? Do they ask for a business name on checkout?


However, if you're positive they're the only retailer where you can purchase this, it may be counter productive to push the issue as court holds no guarantees (in certain circumstances contracts can be void for mistake) and generallythey will award damages rather than forcing specific performance. Being awarded damages wont help if the sole stockist refuses your order.

bris

What is the site, there are thousands of sites directed at trade customers which are priced excluding VAT.

antrobus

NeilF355 wrote: »

... Are there any rules regarding displayed prices and VAT?...

Yes, there is a Price Marking Order 2004, and BIS has " issued a Pricing Practices Guide, which gives advice to traders on good practice regarding giving information about prices."


https://www.businesscompanion.info/en/quick-guides/pricing-and-payment/price-marking-of-goods-for-retail-sale



Basically;


"All price indications that can be seen by consumers must include VAT and any other compulsory charges or taxes"

daytona0

Just to give people a heads up but "neilf355" is the name of an ebay user who has listed a large number of Porsche items which can range from £20 to £400 (including services in repairs) and has a registered company called D9 Autotech Ltd.

So, OP, given you are using an alias which is linked to a Porsche specialist in Bridgend and your situation is pretty similar to what happens between businesses (invoices and prices exclusive of VAT) may I ask whether you have just done business with another company?

If you have bought any sort of car part (more so one compatible with a Porshe) then you'd have a HUGE uphill battle to convince anyone that this was not a b2b transaction. In such an instance it would be down to what the Ts and Cs say as you would not be a consumer.

If you come back to us and say it was a child's toy, or something unrelated like that, then we may be able to advise further

PS, do you have an accountant to help you with your accounts and paying the correct amount of VAT to HMRC? I only ask because, if you a linked to D9 Autotech LTD (or even if you are sole trading on ebay), you should be on the ball with this one!

If you reveal the item type you purchased and/or the company you purchased from then we can offer you some proper advice. As it stands, I think your username of NeilF355 is too unique to be a coincidence! And I tell you what but if you aren't on the ball with a VAT invoice then do you really want to alert HMRC of that fact by quibbling it in a court?

NeilF355

Thank you for all your replies and help, my responses to your questions are

TadleyBaggie wrote: »

What is the site?

The site is eurospares, they sell car parts. I was reluctant to name them initially but I can now see that it is necessary.

unholyangel wrote: »

I know you said you're a consumer, but are they a trade only website? What I mean by that is do they say they are wholesale/trade only on their site or in the T&C's? Do they ask for a business name on checkout?

They make no mention in of being a trade only company, indeed most of their T&C’s seemed to be aimed at the general public.

unholyangel wrote: »

However, if you're positive they're the only retailer where you can purchase this, it may be counter productive to push the issue

You may be right, I’ll have to give it some thought.

antrobus wrote: »

Yes, there is a Price Marking Order 2004, and BIS has " issued a pricing practices guide which gives advice to traders on good practice regarding giving information about prices."

Thanks for the reference, I’ll have a look at that.

daytona0 wrote: »

Just to give people a heads up but "neilf355" is the name of an ebay user who has listed a large number of Porsche items which can range from £20 to £400 (including services in repairs) and has a registered company called D9 Autotech Ltd.

Wow, that’s actually really interesting. I can assure you that I am not associated with D9 Autotech in any way and I am not the NeilF355 seller on ebay (I wanted to use that name but could not as it was already in use, and how’s this for a coincidence – I’ve checked up on the date NeilF355 joined ebay, it was 19th Feb 2004, SIX DAYS before I joined, I couldn’t believe it! I’m off to buy a lottery ticket, I might just coincidently pick the right numbers!)

daytona0 wrote: »

If you come back to us and say it was a child's toy, or something unrelated like that, then we may be able to advise further

The items I purchased were car door interior handles, for a replica Ferrari Dino I am building. It ended up being quite a saga, I have detailed it on another forum called Madaboutkitcars under the Dino 246 builds and discussion area, thread topic "handles" if you want to have a look.

I suppose the VAT issue was the straw that broke this camel’s back.

TadleyBaggie

The T&C for pricing seems to suggest the price does include VAT:

6.1 Unless otherwise agreed in writing with us, you must pay for the goods at the time you place your order. The price of the product (which includes VAT) will be the price indicated on the order page when you placed your order

WhyNot?

NeilF355 wrote: »

Hi
I recently purchased an item online, the price displayed was the price I expected to pay, I don't recall any screen which said that the price was EXCLUDING VAT or +VAT.
I proceeded with the purchase by credit card, next day I received an Electronic invoice which stated that VAT at 20% had been added to the price I expected to pay.
I have checked on the sellers website, the only reference to prices being EXC VAT was on the last page of their Terms and conditions.


I would have expected to see that sort of statement BEFORE I confirmed payment.


Are there any rules regarding displayed prices and VAT?


When I contacted them they told me that I could cancel the order but as they are the only supplier of the item they have me over a barrel so I have no choice but to proceed.


Many thanks
Neil

When you purchased by credit card, you should have been given a total price that you were approving with that credit card. The supplier can only take that amount - no more.
(If you find anymore has been taken than authorised, then contact your credit card provider)

Note that under the terms you agreed to, the order is only accepted by the supplier when they have emailed you to accept the order.
Therefore, if they have not emailed you accepting the order (perhaps because they made an error in the price) they can either request you pay the extra (which you are under no obligation to do) or they can cancel the order (and of course should refund you in full any money taken)

Of course, if it's the only place that sells the part you want, and you want it that badly, then yes they do have you over a barell in regards to the price they can charge you; it's in your court as to whether or not you accept the deal.