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VAT inclusive prices when selling to the public. ASA ruling.

This is a discussion on VAT inclusive prices when selling to the public. ASA ruling. within the uk.telecom.voip forums, part of the Newsgroup Forums category; On Sun, 31 Dec 2006 14:01:05 -0000, "Harry Stottle" <sorryspamdoesntwork@nospam.uk.co> wrote: [...


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  #11 (permalink)  
Old 31-12-2006, 15:19
Peter Parry
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Default Re: VAT inclusive prices when selling to the public. ASA ruling.

On Sun, 31 Dec 2006 14:01:05 -0000, "Harry Stottle"
<sorryspamdoesntwork@nospam.uk.co> wrote:

[color=blue]
>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.[/color]

That excuse is clearly wrong. It didn't take the ASA to show it, one
merely has to read the PMO.

Where there is slight confusion (and will continue to be) is with
retailers who advertise as trade suppliers (and are predominantly
trade suppliers) but in practice accept orders from consumers. Most
people buying from such suppliers know what they are doing though and
are unlikely to be misled.
[color=blue]
>Although I have never agreed with this, it has been hard to
>find a clear example to show how they are wrong,[/color]

It's clearly stated in the PMO and Dell are by no means the first to
have been found in default on this.
--
Peter Parry.
[url]http://www.wpp.ltd.uk/[/url]
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  #12 (permalink)  
Old 31-12-2006, 15:29
johannes
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Default Re: VAT inclusive prices when selling to the public. ASA ruling.



Harry Stottle wrote:[color=blue]
>[/color]
[...][color=blue]
>
> 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. The ruling by the ASA, against a high profile company,
> has now made it much clearer, and hopefully, companies will act on it as
> soon as possible to avoid being reported to the ASA themselves. I cannot
> see any justification for quoting VAT exclusive prices for goods or
> items offered for sale to the general public, other than to mislead, and
> any company doing this needs reporting.[/color]

I quite agree with this. Why should this such an important matter for
companies, unless they see the 'VAT excl.' as a device to fool the
customer into thinking the goods are cheaper than it actually is.
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  #13 (permalink)  
Old 31-12-2006, 15:30
Lordy.UK
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Posts: n/a
Default Re: VAT inclusive prices when selling to the public. ASA ruling.

> Interestingly. Tazbar have been running TV ads.[color=blue]
> Wonder how well they are really doing.[/color]

I have a shop on eBay, signed up to TazBar in December after some people
gave favourable reports but I haven't had a single sale through them
yet. My eBay sales have been through the roof.

I *sooo* want TazBar to do well but the odds are stacked well against
them :/


--
Lordy.UK
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  #14 (permalink)  
Old 31-12-2006, 15:42
Alison Hopkins
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Default Re: VAT inclusive prices when selling to the public. ASA ruling.


"Lordy.UK" <spam@recycle.bin> wrote in message
news:MPG.2001e96ff92b7b6398a212@news.ntlworld.com...[color=blue][color=green]
>> Interestingly. Tazbar have been running TV ads.
>> Wonder how well they are really doing.[/color]
>
> I have a shop on eBay, signed up to TazBar in December after some people
> gave favourable reports but I haven't had a single sale through them
> yet. My eBay sales have been through the roof.[/color]

Buy on one, sell on the other, eh?
[color=blue]
>
> I *sooo* want TazBar to do well but the odds are stacked well against
> them :/
>[/color]

Yup. It isn't healthy to have a monopoly. And I was taught years ago, when I
first started selling, that no competition is actually bad for a business.
I've found it to be true.

Ali


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  #15 (permalink)  
Old 31-12-2006, 16:01
Gordon Hudson
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Default Re: VAT inclusive prices when selling to the public. ASA ruling.


"Harry Stottle" <sorryspamdoesntwork@nospam.uk.co> wrote in message
news:45978f8a$0$97274$892e7fe2@authen.yellow.readfreenews.net...[color=blue]
> 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.


--


Gordon Hudson || Hostroute.com Ltd
e-mail:ghudson [at] hostroute.net
[url]http://www.hostroute.co.uk/resellers[/url] Host 5 web sites for £9 per month
[url]http://www.nameroute.co.uk/[/url] Domain Names with free hosting and email
[url]http://www.myqth.co.uk/[/url] 3000MB of web space for £29 per year


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  #16 (permalink)  
Old 31-12-2006, 16:11
johannes
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Default Re: VAT inclusive prices when selling to the public. ASA ruling.



Gordon Hudson wrote:[color=blue]
>
> "Harry Stottle" <sorryspamdoesntwork@nospam.uk.co> wrote in message
> news:45978f8a$0$97274$892e7fe2@authen.yellow.readfreenews.net...[color=green]
> > 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]

How can that be? VAT inclusive prices are 17.5% higher that VAT exclusive,
obviously... because you'd have to add the VAT. Any idiot can see that.
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  #17 (permalink)  
Old 31-12-2006, 16:15
Gordon Hudson
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Posts: n/a
Default Re: VAT inclusive prices when selling to the public. ASA ruling.


"johannes" <johs@sinospamzefitter.com> wrote in message
news:4597E0E6.944DC200@sinospamzefitter.com...[color=blue]
>
>
> Gordon Hudson wrote:[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]
>
> How can that be? VAT inclusive prices are 17.5% higher that VAT exclusive,
> obviously... because you'd have to add the VAT. Any idiot can see that.[/color]

The british public are obsessed with the headline price.

People don't read the small print but when you get to the checkout the
higher correct price is quoted.
Its a con.
We keep losing customers to companies that appear to be hugely cheaper but
they are not.
Another classic con is £1.99 per month but they only take annual payment and
the VAT is not included so the actual price you will pay is £28.05.
Our cheapest service is £29 per year.

£28.05 and £29.00 are not much different.
£1.99 headline price looks a lot cheaper.




--


Gordon Hudson || Hostroute.com Ltd
e-mail:ghudson [at] hostroute.net
[url]http://www.hostroute.co.uk/resellers[/url] Host 5 web sites for £9 per month
[url]http://www.nameroute.co.uk/[/url] Domain Names with free hosting and email
[url]http://www.myqth.co.uk/[/url] 3000MB of web space for £29 per year


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  #18 (permalink)  
Old 31-12-2006, 16:38
Harry Stottle
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Posts: n/a
Default Re: VAT inclusive prices when selling to the public. ASA ruling.


"Gordon Hudson" <hostroute@gmail.com> wrote in message
news:4597debd$0$757$5a6aecb4@news.aaisp.net.uk...[color=blue]
>
> "Harry Stottle" <sorryspamdoesntwork@nospam.uk.co> wrote in message
> news:45978f8a$0$97274$892e7fe2@authen.yellow.readfreenews.net...[color=green]
>> 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]

This is one of the reasons why the legislation was introduced, to make
sure that everyone quotes VAT in the same way so prices can be easily
compared. It is only since internet sales have become popular that some
of these companies have been trying to get around the regulations by not
quoting VAT inclusive prices, these companies have now been shown to be
in the wrong, and should be reported.

It doesn't matter if the ASA "has no clout", they can only adjudicate on
the basis of the law, otherwise companies would not take any notice of
them, and companies do take notice of the ASA. Dell have accepted they
were wrong and apologised to the ASA, so the ASA censuring Dell is an
important event in defining how VAT should be displayed.


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  #19 (permalink)  
Old 31-12-2006, 17:07
Ivor Jones
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Posts: n/a
Default Re: VAT inclusive prices when selling to the public. ASA ruling.

"Harry Stottle" <sorryspamdoesntwork@nospam.uk.co> wrote in
message
news:45978f8a$0$97274$892e7fe2@authen.yellow.readfreenews.net[color=blue]
> 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.[/color]

Interesting though this thread is, may I ask the relevance to
uk.telecom.voip..?

Ivor


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  #20 (permalink)  
Old 31-12-2006, 17:17
Alison Hopkins
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Posts: n/a
Default Re: VAT inclusive prices when selling to the public. ASA ruling.


"Ivor Jones" <ivor@despammed.invalid> wrote in message
news:4vq935F1d8m1hU1@mid.individual.net...
[color=blue]
> Interesting though this thread is, may I ask the relevance to
> uk.telecom.voip..?
>[/color]

You've not heard about the new tax being imposed by HMRC? Vat on IP?

Ali


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