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Old 31-12-2006, 15:01
Harry Stottle
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Default Re: VAT inclusive prices when selling to the public. ASA ruling.


"Peter Parry" <peter@wpp.ltd.uk> wrote in message
news:igafp2lqf63dh59v9spj66hj5g2uoo8d42@4ax.com...[color=blue]
> On Sun, 31 Dec 2006 11:47:52 -0000, "Harry Stottle"
> <sorryspamdoesntwork@nospam.uk.co> wrote:
>[color=green]
>>This law has been in existence for several years, but it has been hard
>>to define previously because of the legal jargon used in official
>>documentation.[/color]
>
> What is difficult to understand or define or "legal jargon" about :-
>
> "Obligation to indicate selling price
> 4. - (1) Subject to paragraph (2) and articles 9 and 10, where
> a trader indicates that any product is or may be for sale to a
> consumer, he shall indicate the selling price of that product in
> accordance with the provisions of this Order."
>
> ""selling price" means the final price for a unit of a product, or a
> given quantity of a product, including VAT and all other taxes;"
>
> (Statutory Instrument 2004 No. 102 The Price Marking Order 2004)
>[/color]

It was stated earlier that companies supplying other companies have been
using the excuse that they are entitled to state VAT exclusive prices to
the general public because VAT exclusive prices are the prices they use
normally. Although I have never agreed with this, it has been hard to
find a clear example to show how they are wrong, and so the ASA ruling,
or adjudication, against Dell has now made this much clearer by
combining the sales to the general public with the sales to other
businesses, and stating it in their ruling. I am sure that Dell's
lawyers would have gone through the details with a fine tooth comb
before apologising for their mistake, so the point I was making with
this thread was that all sales and services, offered with stated prices
to the general public, must include the VAT inclusive price, which must
be displayed as prominently as the VAT exclusive price if a VAT
exclusive price is used, irrespective of if the company supplies mostly
other VAT registered companies.


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