There have been several discussions in various newsgroups recently about
if companies are obliged to quote VAT inclusive prices when advertising
goods or items for sale to the general public. The main objectors
against quoting VAT inclusive prices have been companies that sell to
other companies, but who also sell to the general public, and their
argument was that because they do not have to quote VAT inclusive prices
when selling to other companies, this somehow excuses them from quoting
VAT inclusive prices if they also sell to the general public.

The ASA (Advertising Standard Agency) has recently ruled that Dell
Computers misled customers when advertising items to the general public,
the ASA stated that when advertising good to the general public, VAT
inclusive prices must be quoted, and these VAT inclusive prices must be
at least as prominent as the VAT exclusive price if the VAT exclusive
price is used, in other words, the VAT inclusive price must be stated
alongside the VAT exclusive price, and the type face used must be at
least as large and as clear as the VAT exclusive price.

Below is a quote from the article in PCPro magazine, the links to the
article and the ASA ruling are given below the quote, so please, if you
are a business, and selling goods or items to the general public, as
well as to other companies, lets have VAT inclusive prices quoted in
your adverts, and stop trying to hide behind the mistaken belief that
you do not have to comply with the law on quoting VAT inclusive prices
in your adverts.

<Quote> 'We nevertheless considered that, because the insert targeted
both the general public and businesses, the VAT-inclusive prices should
have been given at least equal prominence to the VAT-exclusive prices.
We also considered that, because the desktops could be of interest to
non-business users who would be unable to get a desktop for £199, the
approach of using a "from" price excluding VAT was misleading. '

ASA told Dell to take greater care in future. Specifically, it should
'avoid errors that could lead to consumer disappointment'. The
organisation also told Dell to ensure that VAT-inclusive and
VAT-exclusive prices were quoted with equal prominence in adverts with a
general readership. </Quote>

[url]http://www.pcpro.co.uk:80/news/99545/dell-misled-customers-says-asa.html[/url]

[url]http://www.asa.org.uk/asa/adjudications/Public/TF_ADJ_42026.htm[/url]