March 11, 2019

CAP reminds readers that the CAP Code requires that prices in ads include non-optional taxes, duties, fees and charges that apply to all or most buyers. This applies to all advertising and marketing materials, including websites and social media profiles.

Because the correct use of VAT-inclusive and VAT-exclusive prices is a recurring issue in ASA complaints across industries and media, the CAP Compliance team has issued some best practice guidance to help marketers get their price quotes right.

In short marketers should:

• include the VAT when any prospective buyers will pay VAT: if both consumers and businesses are likely to see the ad, and are both able to buy the product(s), quote VAT-inclusive prices must be quoted;
• clearly address any VAT-exclusive prices: if VAT-exclusive prices are quoted, they must be clearly addressed to buyers who do not pay (or who can recover) VAT, e.g. by clearly stating “business price” or “trade price”; and
• include a statement of the amount or rate of VAT payable when quoting VAT-exclusive prices: if VAT-exclusive prices are quoted, these still need to be prominently accompanied by the rate or amount of VAT, for example “ex VAT@20%”.

To access the full Guidance, click here.