Why Is PCA Always Quoting Prices Ex VAT ?

  gcs_uk 08:24 12 May 2003

Just read in this months readers choice article in PCA and have to wonder how many people go out looking for a PC with a budget of £700 EX VAT.

Nobody does if you have £700 to spend you have 700, if you have £1000 to spend you have £1000.

I am sure the majority of readers are not business users so quoting figures ex VAT are slightly misleading. Ok I know PCA always says they are ex vat but still I would much prefer to know the actual price I am going to pay.

The only reason I can think of is that saying you can buy a high spec PC for £700 ex vat sounds better than a article about buying a high end PC for £822

Its a minor niggle but one which for some reason really bugs me.

  anchor 09:24 12 May 2003

I have raised this question many, many times. I even asked for a poll on the subject.

I suspect that many readers of PCA are not professionals, and cannot reclaim VAT. I note that many, if not most, other PC magazines quote prices both with and without VAT, but PCA seem stubbornly to resist doing this.

Please PCA reconsider, and join the majority.

  vaughan007 09:59 12 May 2003

I would prefer prices to include VAT.

Its true, when you have money to spend you never think...I have £700 plus VAT to spend....you think....I have £1000 and thats it.

  Goldcroft 11:32 12 May 2003

This has popped up before. The overwhelming majority of PCA purchasers are not in business, or VAT registered, so quoting VAT exclusive prices is clearly wrong. Wonder where the advertisers come into this?

Don't think we have ever had a clear response on this practice from the PCA.

  gcs_uk 12:34 12 May 2003

FE any response ?

Seems like people are interested to know why PCA continues this practice.

Personally I think it is pressure from the advertisers to get PCA, in reviews etc, to quote prices ex vat so it has the subtle pyschological effect of making items sound cheaper than they actually are.

  Sketch 13:01 12 May 2003

Yeah. But it doesn't work. It's just annoying.

PCA are not the sole misleader. Most (if not all) online shops/magazines/reviewers use the ex vat quotation.

No idea why though.....


  Kilobyte 15:31 12 May 2003

Usually they advertise £700 pc's as £699 to make the price look even less. All of course, ex VAT !

  Coaster3 16:00 12 May 2003

I used to run my own business and it is a simple matter to work out the VAT on a price that includes VAT.

For the small number of business users that use this site I would not have thought it a chore.

However, as is generally agreed, the vast majority of readers of PcA are not business users and, surely, the majority should rule.

  anchor 17:34 12 May 2003

As I said earlier, many, if not most, popular PC mags show both prices, with and without VAT.

Therefore I feel that advertiser pressure alone is not the answer for the reluctance of PCA to change. I would be interested to know why PCA will not adopt the pricing strategy of other mags.

  GANDALF <|:-)> 17:52 12 May 2003

Can't see the problem whether it is £700 +VAT or £822 inc.VAT so long as the '+VAT' is clear. Most people would do a price survey before buying any expensive items, so prices are usually only referred to as a guide. It is not rocket science to work VAT out quickly.
On the plus side one can muse on how much HM Inspector of Taxes is royally shafting one for (£122.50 in this case) and the fact that Dick Turpin at least had a horse and a gracious manner.


  gcs_uk 18:19 12 May 2003

Have to agree with Gandalf about the shafting part, interesting to see that FE has not made any response regarding PCA stance on this.

This thread is now locked and can not be replied to.

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