To all ISP's advertising EX Vat

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ZA_medic

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Looks like we can go to the ASA about all these ISP's that indicate prices ex vat.

http://www.asasa.org.za/ResultDetail.aspx?Ruling=3798

Complaint


“FULL COLOUR A5 GLOSS FLYERZ
5,000 R 999
10,000 R 1499”

It further states “ALL PRICES EXCLUDE VAT”.

The complainant questioned whether it was legal for companies to advertise prices that exclude VAT.
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Finding

The expert opinion received from the South African Revenue Service stated that in terms of section 64 of the Value-Added Tax Act, 1991, any price charged by a vendor in respect of a taxable supply of goods or services shall be deemed to include VAT.
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Ruling

Given the above finding, the advertising:

* Must be withdrawn;

* The process to withdraw the advertising must be actioned with immediate effect on receipt of ruling;

* The withdrawal of the advertising must be completed within the deadlines stipulated by Clause 15.3 of the Procedural Guide; and

* The advertising may not be used again in its current format.


The respondent’s attention is also drawn to Clause 19.4 of Section II.

The complaint is upheld.
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Finally. Deceitful little buggers. :mad:
 
It's good to know this, thanks. It's unfair not to include VAT on prices especially when the exclusive prices are compared next to the inclusive prices, like the list on Hellkom for example sorted from cheapest upwards. It is in a sense false advertising and unfair, no doubt why it's illegal.

Here's some of the ISPs that currently don't include VAT on at least some (if not all) of their prices.


DataPro (www.datapro.co.za) or (www.broadband.datapro.co.za)
isoftnet (www.isoftnet.co.za)
imagine-ips (www.imagine-ips.co.za)
imaginet (www.imaginet.co.za)
ODS-Online Digital Solutions (www.ods.co.za) (Refuse to include VAT despite being aware of it and requests for the past month)
PakMail (www.pakmail.co.za)
PurpleOrange (www.purpleorange.co.za)
RSAWEB (www.rsaweb.co.za)
X-DSL (www.x-dsl.co.za)

-=Edit=-
These now include VAT
Beginning 2 End Technologies (www.b2e.co.za) (Forced by ASA)
GamCo (www.gam.co.za)
interprise (www.interprise.co.za) (Some contradiction on their site but at least they're trying)
iTT Connect (www.ittconnect.co.za) (They've updated their site and seem decent, might be worthwhile to consider using them)
Netlive (www.netlive.co.za)



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On behalf of GamCo, our pricing does include VAT, a VAT calculator is available on our site (Top right of Menu Bar) If you arriving on the site ex VAT I would ask to that you refresh the page or clear your cookies.

Let me know if there is a problem so I can let the developers check.
 
This is interesting ruling as I am also in printing and do advertise some items excluding VAT as most printing advertising is done like this (as well as adverting prices). Our price lists do include VAT for most items. So we will update the lists to include VAT.
 
oh lovely :)))...

now all we need is something to take on ISP's regarding the Uncapped claim when its actually throttled!.
 
I have to admit it's nice seeing some ISPs willing to attend to things like this. It makes life easier when looking for a good honest ISP that doesn't try to sneek pennies out of you.

LabAnimal, this "throttled" nonsense that some are trying to pull lately is unscrupulous, and I'll never consider anything from them.
 
Now if only Telkom would reply and act upon some of the posts here like the above ISP's did. Good for you.

Maybe we should start a list of dodgy ISP's that throttle you.
 
gregmcc said:
Now if only Telkom would reply and act upon some of the posts here like the above ISP's did. Good for you.

Maybe we should start a list of dodgy ISP's that throttle you.
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Sorry, but thats mis-information. If its an IS or SAIX based account, then its beyond the ISP with regards to any throttling. NO DODGYNESS!!

If however, they dont resell one of the above, and do it themselves, then by all means, point your finger wherever you want and clasify them however you want ....
 
IS's fault ofcourse!. not Openweb's! But because of IS, Openweb may loose me as a customer!
 
You're quite correct

in stating VAT requires to be included in prices displayed (according to SARS), however, our error (www.netlive.co.za) was not intentionally done to deceive any prospective customers as it clearly states that VAT needs to be included to the above prices. We listed our prices this way as some of our clientele fall outside of the SA borders where VAT does not apply. We will be changing our prices to show both inclusive and exclusive prices
Thank you for bringing this to our attention.
Netlive KZN cc - Marketing
 
Unfortunately the ISPs in the bad side of the list don't seem to care about this. When I posted the list I also emailed each of them, on 11 Aug, letting them know so they can't suddenly claim "We didn't know" (I still have the sent mails to prove it). It’s a pity it takes the ASA, and not a potential customer, to get them to comply.


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I thought that its 100% legal as long as they clearly specify that it excludes VAT.

Comparing VAT incl prices with VAT excl prices, however, is so damn gay.
 
nodski, that page is so loooooong I doubt anyone other than some lawyers have read it. Since the ASA recently forced Beginning 2 End Technologies to change their adverts because they didn't include VAT in their prices it is obviously still required in the new act. I haven't read all that but did find this in it. It looks like not only do they have to include VAT, but they also have to state that they include it.

65 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).
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Browser, please note that ASA did not force B2E to do anything. B2E simply stated that they will change the website and ASA said cool if you do that we do not have to do anything! You can not legally make any ruling on a law or act that has been replaced!
 
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