‘ADSL prices must include VAT’

[rpm]

http://mybroadband.co.za/news/ADSL/1221.html

 

[cookiemonster]

Imagine IPS advertises like that on MyADSL? None of their prices include vat. But I would never touch them anyways.

 

[ipodmusicman]

Isn't one of the HUGE advantages of VAT that it gets included in the price .. i.e. what you see is what you pay?

I get SO annoyed when I get quoted ex-VAT. Even my garden services quotes ex-VAT to find out at the end of the month that the price he charged is higher than what was quoted. I wanted to take him to task about this, but didn't really know where to go or if this is legal or not.

 

[ToxicBunny]

If he's doing enough turn-over, he'll have a VAT number. And if he's providing a service to the end-user, he is obliged to quote the prices including VAT afaik. Only wholesalers are allowed to quote prices ex-VAT.

 

[TimstaH]

Hmmm, I cont log into this website "www.b2end.co.za"

 

[bobtheuglybunny]

okay, I've been involved in the forums on this topic before. Companies do not have to advertise including VAT. (This according to my attorneys) so this article surprises me a LOT. There are tons of we sites out there with ex. vat pricing....

Now that I think about it does this article actually mention that the ASA instructed B2E to modify their advertising?

The reason that companies do advertise this way (the ex VAT pricing) is cause other companies are far more interested in the ex vat pricing cause at the end of the day that is what they land up paying? They DO NOT PAY THE VAT when all is said and done.

Cookiemonster, have you experienced problems with Imagine IPS btw or is just because of the VAT thing...if you're gonna knock a company you might as well make it constructive IMHO....

 

[bobtheuglybunny]

Imagine IPS advertises like that on MyADSL? None of their prices include vat. But I would never touch them anyways.

I think they rock BTW. And I've actually dealt with them....

 

[boramk]

I think they rock BTW. And I've actually dealt with them....

same. they are pretty reliable and cheap

 

[Tns]

They have to state whether the price excludes vat otherwise unless stated vat is included.

 

[risingtide]

Isn't one of the HUGE advantages of VAT that it gets included in the price .. i.e. what you see is what you pay?

I get SO annoyed when I get quoted ex-VAT. Even my garden services quotes ex-VAT to find out at the end of the month that the price he charged is higher than what was quoted. I wanted to take him to task about this, but didn't really know where to go or if this is legal or not.

AFAIK It is perfectly legal to quote ex-vat prices as long as the quote says it is exclusive in lettering of the same size as the price.
I don't see what the fuzz about exclusive prices is. It is easy enough to figure how much it will cost with vat added.

 

[Ekhaatvensters]

It can be a bit of a cheap trick, I saw a few of IPS's ex-vat prices and just clicked on the banner, then realising that their prices are worse than some others...

Still interesting that they made them change the advert. If it was a business service then it would make sense.

 

[Mercury]

Companies do not have to advertise including VAT. (This according to my attorneys) so this article surprises me a LOT.

Not so. Why not go to section 65 of the VAT Act and see for yourself;

Any price advertised or quoted by any vendor in respect of any taxable supply of goods or services shall include tax and the vendor shall in his advertisement or quotation' state that the price includes tax, unless the total amount of the tax chargeable under section 7(1)(a), the price excluding tax and the price inclusive of tax for the supply are advertised or quoted by the vendor: Provided that-

i) where the price inclusive of tax and the price excluding tax for a supply are advertised or quoted, both prices shall be advertised or quoted with equal prominence and impact...

 

[Gatecrasher]

Any banner advert showing an ex-VAT price is both misleading and dishonest.

Even companies have to pay VAT. Yes, they may claim it back from the taxman as an input to their business, or they may not.

But everyone deserves the courtesy of seeing they price they will actually be paying.

 

[ld13]

This has been discussed for a looong time in another thread “recently”. It was concluded that any company advertising prices, that could reach the consumer, must be shown incl. VAT and not Excl. of vat - Even if it clearly states this. So in other words, if the company sells strictly to other businesses only, they may show ex Vat prices. Otherwise, it must be shown as Incl of VAT. GamCo was one of the ISPs that stepped up quickly (just to name one) and changed their prices to comply with this.

 

[noswal]

"..van DeMerva.." ???

 

[Gatecrasher]

"..van DeMerva.." ???

It's a gives a common old name a touch of class, huh? There'll soon be a flood of applications at the deed poll offices.

I can already see a new designer clothing brand on its way...

 

[nuyork]

ODS is another company that needs to sort out their pricing page.

http://www.ods.co.za/Services/uncapped_adsl.asp

Unless they only sell to companies and not private individuals.

 

[ld13]

ODS is another company that needs to sort out their pricing page.Unless they only sell to companies and not private individuals.

They dont. They sell to anyone.