4 ms·

We are moving towards a pricing structure where the advertised price is not the price you pay. I'm from the UK, but my limited experience in the US says: that

by gmac 14y ago

We are moving towards a pricing structure where the advertised price is not the price you pay. I'm from the UK, but my limited experience in the US says: that ship has well and truly sailed. I'm never quite able to get used to sales tax added at the checkout, and substantial and essentially-mandatory tipping across many services. In Europe you basically always pay the advertised price in a shop or pub, and you can do so at a push in a bar/cafe/restaurant. (In France, I believe even a service charge is included in restaurant menu prices).

saurik 14y ago
Is VAT (which, from the standpoint of a consumer purchasing something at retail, acts as a "very large sales tax") not added at checkout? Is it normally listed on the sticker prices throughout the store?
- gst 14y ago
  In most (all?) European countries VAT is included in the sticker prices. If the price on the sticker says €5 you also pay exactly €5 for it.
- kryptiskt 14y ago
  > Is it normally listed on the sticker prices throughout the store? Unless it is a catalog with products strictly aimed at businesses, VAT is always included.
- rahim_nathwani 14y ago
  Yes. In the UK, sticker prices or advertisements aimed at consumers must include VAT where applicable. This is not so if the sticker/ad/whatever is aimed _solely_ at businesses (many of whom can claim back the VAT). Further info: http://www.hmrc.gov.uk/vat/sectors/consumers/basics.htm http://www.hmrc.gov.uk/vat/sectors/consumers/basics.htm Service charges are a different matter. Some restaurants advertise a mandatory service charge (e.g. 15%) on all bills, or for parties of x (e.g. 6) or more people. Although it may seem like increasing prices by the amount of the mandatory service charge would make life easier for everyone, services charges (even mandatory ones) are treated differently for tax purposes: if they are distributed to employees, they are not subject to VAT (revenue tax) or Corporation Tax (profits tax). They are, however, subject to payroll taxes (PAYE Income Tax and NIC): http://www.hmrc.gov.uk/paye/payroll/special-pay/tips.htm#1 http://www.hmrc.gov.uk/paye/payroll/special-pay/tips.htm#1
- vidarh 14y ago
  In some European countries, not only is the VAT included price legally required to be the most prominently displayed price for any products advertised at consumers, but a consumer can legally demand to pay the most prominently displayed price even if it is VAT exclusive, and the seller will be on the hook for the VAT. It acts as a very effective deterrent for companies to try to play games with VAT exclusive pricing.
lostlogin 14y ago
Yes, and how did it ever come to be any other way anywhere? No value matters except what comes out my pocket - why tell me any other number?

by gmac 14y ago

saurik 14y ago

Is VAT (which, from the standpoint of a consumer purchasing something at retail, acts as a "very large sales tax") not added at checkout? Is it normally listed on the sticker prices throughout the store?

gst 14y ago
In most (all?) European countries VAT is included in the sticker prices. If the price on the sticker says €5 you also pay exactly €5 for it.
kryptiskt 14y ago
> Is it normally listed on the sticker prices throughout the store? Unless it is a catalog with products strictly aimed at businesses, VAT is always included.
rahim_nathwani 14y ago
Yes. In the UK, sticker prices or advertisements aimed at consumers must include VAT where applicable. This is not so if the sticker/ad/whatever is aimed _solely_ at businesses (many of whom can claim back the VAT). Further info: http://www.hmrc.gov.uk/vat/sectors/consumers/basics.htm http://www.hmrc.gov.uk/vat/sectors/consumers/basics.htm Service charges are a different matter. Some restaurants advertise a mandatory service charge (e.g. 15%) on all bills, or for parties of x (e.g. 6) or more people. Although it may seem like increasing prices by the amount of the mandatory service charge would make life easier for everyone, services charges (even mandatory ones) are treated differently for tax purposes: if they are distributed to employees, they are not subject to VAT (revenue tax) or Corporation Tax (profits tax). They are, however, subject to payroll taxes (PAYE Income Tax and NIC): http://www.hmrc.gov.uk/paye/payroll/special-pay/tips.htm#1 http://www.hmrc.gov.uk/paye/payroll/special-pay/tips.htm#1
vidarh 14y ago
In some European countries, not only is the VAT included price legally required to be the most prominently displayed price for any products advertised at consumers, but a consumer can legally demand to pay the most prominently displayed price even if it is VAT exclusive, and the seller will be on the hook for the VAT. It acts as a very effective deterrent for companies to try to play games with VAT exclusive pricing.

lostlogin 14y ago

Yes, and how did it ever come to be any other way anywhere? No value matters except what comes out my pocket - why tell me any other number?