Warning over VAT pricing

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BUSINESSES in Hampshire need to be wary of advertising prices excluding VAT, a county accountant has warned.

It comes after a ruling from the Advertising Standards Association over a ‘misleading’ hotel room advert, which showed prices without the VAT added, even though it clearly stated VAT was excluded.

VAT expert, Alan Rolfe, of independent accountants HWB, which advises firms in the Portsmouth area, said: ‘This has implications for any Hampshire business advertising to consumers.

‘The ASA is sticking to its guns and insisting that either the full price be displayed or the VAT rate or amount of VAT due be clearly stated.

‘And this applies to all adverts apart from those broadcast, including print and those on the web.

‘Businesses should act now or risk falling foul of the advertising authorities.’