Including VAT rule - Restaurants

stoke

Honorary Master
Joined
Aug 7, 2003
Messages
10,532
Why is it that restaurants think that they are above the "Prices shown must include VAT unless otherwise indicated" rule?

There's a restaurant near where I live, we went there for a lekka sunday lunch, R55 each for the lunch, and then some drinks. We went there cos we saw a board advertising Sunday roast for R55.

You get the bill and lo and LO-AND-BEHOLD ... The R55 EXCLUDES VAT.
There is no mention in the menu that the prices exclude VAT either.

Suddenly R10 for a tot of Spiced Gold, which seemd kind of pricey, but manageable, becomes 11.40, which is just plain expensive.

Then, they get all bent out of shape when you query that, and they insist that this is the norm.

Am I wrong? Is it the norm with Restaurants to exclude VAT in their pricing?
 

medicnick83

Paramedic
Joined
Aug 23, 2006
Messages
20,705
If I'm not wrong, you not allowed to advertise EX VAT anymore.

I know FOR SURE that this is true with regards to print ads.

The price you see is the price you pay bru!
 

medicnick83

Paramedic
Joined
Aug 23, 2006
Messages
20,705
They seem to get away with ignoring minimum wage laws too.

But if someone moans about it to the right people, it can be sorted :D

LAWS are very strict when it comes to Employers not obeying the law with regards to employees.
 

xrapidx

Honorary Master
Joined
Feb 16, 2007
Messages
39,206
Wow.... never seen a restuarant do that... I would have refused to pay the vat... its not like they can call the cops considering they've advertised the price as R55
 
Last edited:

medicnick83

Paramedic
Joined
Aug 23, 2006
Messages
20,705
Me too xrapidx

And if they made a issue, I'd have whipped out a camera, taken pics, kept the receipt, come home, e-mailed the head office, faxed them and even contacted the ASA!
 

xrapidx

Honorary Master
Joined
Feb 16, 2007
Messages
39,206
I just wouldn't of paid... if they made an issue or not... they could have called the cops if they wanted.
 

medicnick83

Paramedic
Joined
Aug 23, 2006
Messages
20,705
Come on, seriously, how far would you 'in reality' have pushed it... I'd have made an issue just to make a point but gone home and done the rest properly ;)
 

stoke

Honorary Master
Joined
Aug 7, 2003
Messages
10,532
Pursuing the argument would have ruined the good mood I am in.
 

medicnick83

Paramedic
Joined
Aug 23, 2006
Messages
20,705
Of cause... but you should still make an issue out of it, think bout it... I bet you, say, R50 you'll get offered a free supper ;)
 

xrapidx

Honorary Master
Joined
Feb 16, 2007
Messages
39,206
Come on, seriously, how far would you 'in reality' have pushed it... I'd have made an issue just to make a point but gone home and done the rest properly ;)

I personally have zero tolerance for scammers, of any sort.
 

medicnick83

Paramedic
Joined
Aug 23, 2006
Messages
20,705
Agreed... but you understand what I was getting at.
Making this moerse scene, getting the police involved etc when it's not worth it.
 

xrapidx

Honorary Master
Joined
Feb 16, 2007
Messages
39,206
Agreed... but you understand what I was getting at.
Making this moerse scene, getting the police involved etc when it's not worth it.

Thats why they do it though...cause people let them get away with it...
 

HavocXphere

Honorary Master
Joined
Oct 19, 2007
Messages
33,156
They are wrong, you are right. Next time raise hell.

Its illegal, deceptive and utter BS.
 

Milano

Honorary Master
Joined
Feb 7, 2004
Messages
16,662
http://www.lawsoc.co.za/members/legalresources/usefulleg/valueaddedtaxact.htm

Prices advertised or quoted to include tax



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;



(ii) price tickets on goods need not state that the prices include tax if this is stated by way of a notice prominently displayed at all entrances to the premises in which the enterprise is carried on and at all points in such premises where payments are effected;



(iii) the Commissioner may in the case of any vendor or class of vendors approve any other method of displaying prices of goods or services by such vendor or class of vendors during a period approved by the Commissioner which commences before and ends after the commencement date or, where the rate of tax is increased or reduced, the date on which the increased or reduced rate of tax takes effect;



(iv) a vendor may not state or imply that any form of trade, cash or any other form of discount or refund is in lieu of the tax chargeable in terms of section 7 (1) (a).



[Para. (iv) added by s. 174 of Act 60 of 2001.]

[S. 65 amended by Government Notice 2695 of 8 November 1991 and by s. 37 of Act 136 of 1992.]
 

DragonLogos

Expert Member
Joined
May 2, 2005
Messages
2,033
you can give SARS a call - come to think of it Telkom also seem keen on quoting ex VAT
 

ToxicBunny

Oi! Leave me out of this...
Joined
Apr 8, 2006
Messages
97,947
My response would have been simple..

Deduct the now extra VAT, pay the bill and leave... and then never go back to that place ever again. They advertised the price at R55, did not say it excluded VAT therefore the price was R55.
 

stoke

Honorary Master
Joined
Aug 7, 2003
Messages
10,532
Cool, next time I'll be prepared for battle. Thanks for the support peeps, and I won't name and shame, it's uncouth.
 
Top