E-commerce websites and VAT pricing visibility

[DrJohnZoidberg]

I came across this article https://www.golegal.co.za/prices-advertised-vat/ as I was sure I heard it wasn't legal showing list prices as excluding VAT.

I would assume this applies to listings on e-commerce websites right? Just trying to get my facts straight as I was looking at some solar stuff on a site and only after getting official quotes from them realised that their item pricing on the website is ex vat, with no mention of this anywhere.

 

[supersunbird]

Well, depends on whether seller is "wholesale" (aka Business 2 Business) or not.

 

[DrJohnZoidberg]

Well, depends on whether seller is "wholesale" (aka Business 2 Business) or not.

No, they're direct to consumer, anyone can order from the website.

The VAT inclusive price only shows once you've added something to your basket.

 

[deweyzeph]

https://www.sars.gov.za/wp-content/uploads/Ops/Guides/LAPD-VAT-G02-VAT-404-Guide-for-Vendors.pdf

First item:

All prices charged, advertised or quoted by a vendor must include VAT at the applicable rate (currently 15% for standard-rated supplies).

 

[deweyzeph]

Well, depends on whether seller is "wholesale" (aka Business 2 Business) or not.

Anybody who is a VAT vendor must display prices including VAT. These B2B sites are all breaking the law.

 

[DrJohnZoidberg]

https://www.sars.gov.za/wp-content/uploads/Ops/Guides/LAPD-VAT-G02-VAT-404-Guide-for-Vendors.pdf

First item:

Thanks! I already emailed them bringing this up so I will give them some time to fix their issue.

 

[deweyzeph]

Thanks! I already emailed them bringing this up so I will give them some time to fix their issue.

I've noticed the same thing with a lot of sites. They don't even consider the fact that non-VAT vendors might be buying their products. A lot of small businesses aren't registered for VAT either and the ex-VAT price is misleading when it's not made clear.

 

[DrJohnZoidberg]

I've noticed the same thing with a lot of sites. They don't even consider the fact that non-VAT vendors might be buying their products. A lot of small businesses aren't registered for VAT either and the ex-VAT price is misleading when it's not made clear.

I've honestly never seen a website quote prices ex vat and then not tell you. It should at least be mentioned somewhere (I even looked through their T&Cs but there is nothing).

 

[deweyzeph]

I've honestly never seen a website quote prices ex vat and then not tell you. It should at least be mentioned somewhere (I even looked through their T&Cs but there is nothing).

It's just lazy. SARS is pretty clear, every product advertised must show the price including VAT. If you want to show the price ex VAT in addition to that, that's up to you as a vendor, but you must also then show the price including VAT alongside it, AND clearly put an "ex VAT" and "inc VAT" marker next to each price.