In the US, only the end user is paying sales tax as well, yet we display prices excluding sales tax.
Is the practice of quoting/showing prices including VAT a government requirement or a market custom? The reason why I'm asking this question is because the whole discussion about how to treat VAT is based on US/nonUS marketing practices. The US has marketing practices of certain price points that give the illusion of value (ie $9.99, $49.00) or of using round numbers (ie $10.00, $50.00) for simplicity with all of these illusionary value numbers not including tax. Yet, the VAT/GST countries want to use the same illusion of value or simplicity but have it include the tax adjustment. If it's an issue of marketing, the solution should be handled by a marketing/ content/ ecommerce approach, if it's an issue of tax, the solution should be handled by a price adjustment/ tax approach. --- Jacques Le Roux <[EMAIL PROTECTED]> wrote: > From: "Chris Howe" <[EMAIL PROTECTED]> > > Thanks for the responses, I guess I wasn't clear > on my > > question. If we agree on a price that is subject > to > > VAT, at who's discretion is it that the agreed > price > > is VAT inclusive/exclusive. > > > > ie, > > the base price is 100 > > VAT = 10% > > final price = 110 > > > > When two parties agree upon a price, the agreed > price > > can either be 100 VAT exclusive or 110 VAT > inclusive, > > it's the same agreement and the end payment is 110 > in > > both situations. Who says that you have to list > each > > item on an invoice as VAT inclusive? Is it > government > > mandated that prices are promoted as VAT inclusive > or > > is it simply the custom of the marketplace? > > For an agreement (B2B you mean I guess, because > there is no agreement in retail and there prices are > fixed unilateraly - not in some > parts of Africa BTW - always VAT inclusive) price > are always VAT exclusive because only "end users" > (customers) are paying VAT. > In fact people that collect VAT for a tax authority > (in the context of their work, me for instance) do > not pay VAT for what they > need in their business (they pay but when the send > back VAT they have collected they deduce VAT they > have paid). Of course ASA I'm > going to buy bread I will pay VAT and will never see > that money back (some are juggling with that but - > no only with bread of > course -, I already did see bad results, as > everybody know : juggling is an art ;o). Some might > say that it's not really true that I > never see my money back : hospitals, roads, schools, > etc. : 43% of them come from VAT in France. > > HTH > > Jacques > >
