Hidden VAT in online purchase

Alderbank

Don't forget that the Price Marking (Amendment) Order 2024 is now in force:

https://www.legislation.gov.uk/uksi/2024/1055

highlander58

https://forums.moneysavingexpert.com/discussion/comment/82154913#Comment_82154913

Thanks for helpful reply.

However legislation suggests I am entitled to refund of 20% extra that was charged at checkout, which they only then said was VAT.

“As a private consumer purchasing from a publicly accessible UK website, UK law—specifically Rule 3.18 of the CAP Code and the Consumer Protection from Unfair Trading Regulations—strictly dictates that all advertised prices must be inclusive of VAT. Your site stated 'tax calculated at checkout' but failed to display any domestic VAT rate or amount prior to payment.”

Any further thoughts?

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82155218#Comment_82155218

What was the website?

On the face of it, they've made an error advertising the price, but have charged you the right amount. You are entitled to redress but not betterment. So you can keep the goods, or return them and get a full refund, but you cant use this error to secure a discount on the full price including VAT.

highlander58

https://forums.moneysavingexpert.com/discussion/comment/82154932#Comment_82154932

No - I’m not saying that. I’m saying that I’m not happy to be charged an extra £20 VAT at checkout if it’s not been displayed from the start - as the law says it should be. If goods had been displayed as £100+VAT at start, I could have made an informed decision on whether to buy or not - as the law requires.

highlander58

https://forums.moneysavingexpert.com/discussion/comment/82154913#Comment_82154913

2. Thanks for a polite reply! However - looking at the CMA & CAP legislation below - I believe I am entitled to the 20% back. It may have been intended to be VAT - but it wasn’t stated from the start. So it’s effectively just an illegal extra charge tacked on later - which must be refunded.

The 2024 DMCC Act is very clear on price transparency & unfair pricing such as drip feeding - which is actually illegal. Also Rule 3.18 of the CAP Code and the Consumer Protection from Unfair Trading Regulations—strictly dictate that ALL advertised prices - front the very start -  must be inclusive of VAT. My site stated 'tax calculated at checkout' but that’s not good enough. It failed to display product price inclusive of  VAT on all pages prior to payment. 

https://assets.publishing.service.gov.uk/media/6a3a92e333bc5beefd3c47b0/CMA209_Unfair_commercial_practices__price_transparency_13.2.26__2_.pdf

https://www.asa.org.uk/advice-online/compulsory-costs-and-charges-vat.html

highlander58

https://forums.moneysavingexpert.com/discussion/comment/82154937#Comment_82154937

Oh dear - another rude contributor! We were doing so well….
Guidance attached to LAWS, as in this case, very definitely IS mandatory. It’s there to help people & businesses understand those laws (often very complex) so they don’t break them. My statements above are attributed with verifiable links to actual Laws & Guidance. Yours aren’t.

QrizB

My site stated 'tax calculated at checkout' but that’s not good enough.

The rate of VAT that applies - if indeed it applies at all - will depend on where the purchaser resides.

Had you previously informed the seller that you were a UK resident? Eg. by creating an account with a UK address, and being logged in to that account throughout your buying session?

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82155274#Comment_82155274

So where does that say you are entitled to a refund of the difference. Your remedy is to cancel the contract and receive a full refund.

Your alternative is to raise with the company and see if they will make a goodwill payment but one thing they cannot due is not charge VAT when it is legally due. Or failing that take legal action.

Not sure why you are so reluctant to name the site, you said earlier in case they did no wrong but you are adamant they have?

Caz3121

which website?

many that deal with trade also have the option at the top of the page to toggle between showing prices including or excluding VAT

VAT registered businesses would probably be more interested in viewing the prices ex-VAT and non-VAT registered would choose including VAT

even those that view the prices without VAT will see it added on for the final invoice as a VAT registered business must charge it

QrizB

Also Rule 3.18 of the CAP Code and the Consumer Protection from Unfair Trading Regulations—strictly dictate that ALL advertised prices - front the very start - must be inclusive of VAT

The CAP Code doesn't apply here as the ASA has no authority over suppliers' own websites.

Paragraph 4.7 of CMA 209 (you linked earlier) details how a seller can offer VAT-exclusive prices to trade buyers and VAT-inclusive prices to private buyers.

Which brings us back to the question - how did you advise the seller that you were a private buyer and not a trader?