VAT Inclusive Pricing: A Bad Move For All, Especially Consumers

Consumer Action BahamasThe decision by government to require businesses in law to display VAT through “VAT Inclusive Pricing” is turning out at this stage to cause the following significant problems:

#1 – Widespread confusion, because consumers are not certain of what is supposed to happen at Point of Sale (the register) based on the sticker price on the item.

#2 – THE POTENTIAL FOR BEING CHARGED VAT TWICE. Depending on how a business’ Point of Sale system is set up, if the register rings out an item using the price on the VAT Inclusive sticker AS IS without stripping the VAT out, and the system is set up to charge 7.5% on whatever comes up as the subtotal – consumers will end up being charged VAT twice, because the sticker price is supposed to already have the 7.5% included, but the system would be charging VAT on that VAT Inclusive sticker price. Continue reading