Tax inclusive prices
Shops have to display prices that are "complete" and "tax inclusive". This means the price on display must include all taxes and not have any extra "hidden" charges.
If the price doesn't include Value Added Tax (VAT), for example, they are misleading consumers and in breach of consumer legislation. In the case of certain invoices such as telephone and electricity bills, the VAT may be shown separately.
In general, service providers are not legally required to display their prices or charges. But when they choose to do so, they must give the final price, inclusive of taxes and charges.
There are also rules about how certain advertisements for concerts and theatre shows indicate additional charges and booking fees.
In every written advertisement for a concert or theatre show the admission price must be indicated and, where applicable, and separately, the amount, in monetary or percentage terms, of any additional charge and the circumstances in which such additional charges are payable.
In all other forms of advertising the admission price must be stated together with a reference to the fact that an additional charge may be payable in certain circumstances.
'Trade only'
One exception to this "tax inclusive" rule is a business selling goods intended mainly for other business customers, such as a "trade only" electrical distributor, or a cash and carry which says that it is "trade only".
These kinds of businesses are allowed to show prices that exclude the VAT element.
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