"Joe Lee" <invalid@noaddress> wrote in message
news:45985682$0$27099$db0fefd9@news.zen.co.uk...[color=blue]
>
> "Gordon Hudson" <hostroute@gmail.com> wrote in message
> news:4597debd$0$757$5a6aecb4@news.aaisp.net.uk...[color=green]
>>
>> "Harry Stottle" <sorryspamdoesntwork@nospam.uk.co> wrote in message
>> news:45978f8a$0$97274$892e7fe2@authen.yellow.readfreenews.net...[color=darkred]
>>> 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)[/color]
>>
>> Sadly ASA has no clout.
>> It will take a change by HM revenue and customs to actually make any
>> difference.
>> My business loses lots of sales by quoting VAT inclusive prices as it
>> makes us look more expensive than our competitors.[/color]
>
>
> Just had a very quick look at your site. Right at the top you say "UK
> Reseller web hosting from £9", but there's no mention that this is a VAT
> inclusive price. Why not grab the attention of the potential customer
> immediately by stating "VAT INCLUDED" in a very prominent manner. You are
> not doing yourself any favours by counting on anyone taking the time to
> delve in & discover it for themselves.[/color]

Thats a fair point, we do actually play this up in some of our advertising
but not on the web site because its simply too complex to try and sell that
idea.
Potential customers don't know that other sites they are looking at don't
include VAT.
They compare the headline prices as its only the first few sentences that
get read on any site when people are doing comparisons and the main dcision
making factor is price.
The only way we can compete on a level playing field would be to quote ex
vat prices the same as everyone else.
I have considered doing that but its surprisingly more complicated (accounts
wise) than doing it VAT inclusive.

In any case, business users DO pay the VAT if they buy the service!
They may or may not be able to reclaim it but that is a seperate issue and
as they are also charging thier customers VAT then they probably never get
anything back in cash from HMRC, they will be paying out to them.