September Specials!

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Article 65 of the VAT act.

All advertised and quoted prices MUST be inclusive of VAT and when the amounts are quoted or advertised excluding VAT, the VAT amount and the total answer must also be stated.

Sorry, but this is a bugbear of mine. I do not understand why people advertise excluding VAT, and that is why the act is clear.

Unless of course the above means excluding installation, and not excluding VAT. My apologies then

Thanks , I will look into it. In Distribution each and every quote to us is VAT exclusive. Guess that is why we are so use to doing it. In the corporate world VAT is not mentioned at all. You might be right that and add to the public should include vat. Will investigate.

It is correct, B2B and internally we also never use or even think of talking including VAT, but if you advertise or quote something to a consumer, you must clearly show the VAT.

Sorry, struggle to understand the issue, plus 15% on a calculator is so easy…

The ads clearly show that it excludes VAT. I see nothing wrong here. Nobody is being dishonest.

The spirit of the law, if I can call it that, is to protect the consumer against that kind of nonsense where you advertise the ex-VAT price (to get him into your showroom), only to surprise him with a higher price. That is not happening here.

Of course that is my opinion. You get a pedantic magistrate on a bad day, who knows :slight_smile:

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The legal implication is that if the price does not state that VAT is excluded, it is a legal presumption that it is already in the price.

There are 2 things at play here… maybe 3.

  1. what SARS wants.
  2. what the ASA (advertising one not athletics one) wants.
  3. what consumers want/who you are targetting.

VAT act says prices charged are deemed to include VAT (S64)
VAT act says prices in advertising must include VAT or show with equal prominence VAT inclusive and exclusive price S65).

Someone complained about advertised prices and ASA found the adverts to be in contravention of the VAT act requirement but the ASA finding is technically only binding to the specific complaint, not to any other vendors even in the same industry. There were many media outlet articles following the ASA ruling stating that you can get in trouble for having VAT excl prices in advertising.

It seems unlikely that SARS will fine you for exactly how you advertise the price (although lately they seem to go after any loose change they can find) but someone can complain at the ASA and you will likely lose.

Third issue, if expecting mainly installers and people registered for VAT to respond to the advert just indicating “excl” should suffice. If hoping to get money out of the wallets of general public then make it as easy as possible. Don’t make me wonder whether the “excl” means excluding installation, or whether maybe some of the parts attract VAT while others might not - show me clearly how much money will go out of my wallet.

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Adding to that. You get so excited at the good price advertised, to then read the small print having to add the VAT … suddenly the price jumps by 15%.

Or worse, you missed it… as you are paying, suddenly the price jumps by 15%.

Foul tastes come to mind I tell ya.

Cause last time I checked, there were fewer VAT numbers around than customers who don’t need a VAT number.

Sidebar:
My personal pet peeve … less sneaky … yeah, it is a technique used to get attention.
Showing the Incl VAT price also looks more professional, than not - attention to detail and all that.

I have no skin in this game, the above are just my personal views based on actual experiences on THIS matter, seeing as I do have a Co VAT number and I do sell on to customers. Customers don’t need to get out a calculator… the VAT vendor does. :innocent:

Just add the 15% … closes many many potential rabbit holes.

And to add one more thing, one of my favourite places (because they are in driving distance, more than that, they are in EV driving distance TTT!) does this to some extent. The price that catches your eye is the ex-VAT one, but technically they do comply with the law.

I am within 5km from the Centurion branch. These guys are gr8!

These originated from them apart from the LCD one. It’s a buck converter and a buck/boost converter for my Astronomy stuff.

Groetnis

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I bought three ESP32 boards yesterday. Reason… I want to mess with MicroPython, and the ESP8266 doesn’t have enough RAM to fit all the stuff I want to mess with. The Modbus-TCP client on its own is too large for the smaller chip.

I think I finally managed (last night) to get all the bobs and bits together for the project. I’ll maybe write something about it somewhere else… later… :slight_smile:

YES!!!

My pet hate… I HATE THAT, sneaky bastards!!! :right_anger_bubble:

… because they do that, I get so deeply annoyed that most of the time I will look elsewhere just because of that, and I will find incl prices at times, same as their Excl price, at other vendors for the same thing … sometimes.

And all that just because they irritate the dinges out of me with that stupid silly idiotic foul move aimed at me to really just tick me off.

(… throws a few more things around the house in a “vloermoer” … )

Ok, calming down …

EV driving distance… yeah, that has become a “thing” now.

Can I get there with the EV or must I take the ICE? :rofl::rofl::rofl::rofl:

Great pity they ran out of the ESP32 boards with LIPo charging built in. Those were awesome.
ESP32 with LiPo

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Most of their stuff is on the low side. I was looking for a smaller board without headers, and ended up getting the one with the OLED display, because it’s all they got right now.