Misleading prices by ISP's

m0zy

m0zy

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Misleading prices by ISP's :mad:

The following ISP's are misleading the public by quoting there prices EX.VAT:
www.x-dsl.co.za
www.imaginet.co.za

If you know of any other ISP's that are doing this then please post them here.
 
I heard some while ago that companies are meant to advertise the products they sell EXCL VAT, as it has to do with tax laws or something??

I wrote a shopping cart web app a while back, and the one client told us that we must change the app to cater for both prices INCL and EXCL of VAT, as it is required by law to show the EXCL price...was he talking out his arse???? Cos it was a hassle(yes Im lazy) to do this tweak for him, as none of the other clients asked for it?

Odd...
 
No, as far as I know(Not much after a few beers) all prices should be VAT.Inc
 
Imaginet's prices are in a tabular form with directly underneath it(in the same size font) the excl VAT line. I do not find it misleading at all. If they however had a note removed from the table(ie half a page down), that would have been misleading.
 
What difference does it make? You can see whether it says inclusive or exclusive. If they don't indicate that, then there's reason to complain.

Edit: Both sites indicate exclusive of VAT.
 
VAT = Value ADDED Tax.
I think you only need to display it without VAT if you sell you sell to overseas clients
 
If you are not a VAT vendor then you dont charge VAT. You have to have sales something like R300 000 a year to register for VAT.

So some small/new business might not charge VAT at first because they don't need to.

Just my 2 cents! :D
 
X-Dsl clearly state Excl. Vat on all ads? The only products advertised Incl. are IS accounts, also stated clearly on the ad.?
 
xdsluser said:
X-Dsl clearly state Excl. Vat on all ads? The only products advertised Incl. are IS accounts, also stated clearly on the ad.?
Click to expand...

You can't advertise a retail price without VAT and then collect VAT. That is not proper. Only wholesale prices are allowed to be quoted without VAT, because VAT can be claim back, because it is cost of sales and value is then added and the product is not consumed.

http://www.sars.gov.za/v_a_t/VAT Guides/VAT 417 - Small vendors - Guides.pdf
Do you include VAT in the price of everything you sell?
If you are registered or required to be registered for VAT, you must include VAT (at the standard or zero-rate) in the price of most goods you sell in your business. These are called taxable sales.
Click to expand...

EDIT:
The Advertising Standards Authority of South Africa (ASA) does deal with misleading ads with respect to VAT.

http://www.asasa.org.za/Default.aspx?mnu_id=37
19.4 VAT
Attention is drawn to the provisions of Section 64 and 65 of the value-added Tax Act 89 of 1991.
Click to expand...
 
Last edited:
Most shops etc in the U.S show their products without vat. Americas Shoprite stores have Coke 2 for 99c that will exclude the vat.

Just depends what the business wants to do.
 
The States uses Sales Tax. The UK's VAT is the closest example to South Africa's VAT.

Sales Tax is not included in the advertised price. Some of the oldies here might remember that from the days when we had Sales Tax.
 
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