The CAP Code requires that prices in ads include non-optional taxes, duties, fees and charges that apply to all or most buyers. This applies to all advertising and marketing materials, including websites and social media profiles.
Because the correct use of VAT-inclusive and VAT-exclusive prices is a recurring issue in ASA complaints across industries and media, we have some pointers to help you get your price quotes right.
Always Include VAT When Buyers Will Pay It
If your ad is aimed at both consumers and businesses—and both can purchase the product—you need to quote VAT-inclusive prices.
If both consumers and businesses are likely to see the ad, and are both able to buy the product(s), you’ll need to quote VAT-inclusive prices.
Make VAT-Exclusive Prices Crystal Clear
If you do quote VAT-exclusive prices, make sure they’re clearly intended for buyers who don’t pay (or can recover) VAT. Use clear labels like “business price” or “trade price”.
Show the VAT Rate or Amount
VAT-exclusive prices must always be accompanied by the VAT rate or amount. If you can quote VAT-exclusive prices, these still need to be prominently accompanied by the rate or amount of VAT For example: “£100 ex VAT @ 20%”.
See our guidance on VAT here for more detail and examples.
New: VAT Pricing Self-Help Tool
We’ve created a tool to try to help make life easier: the 'Advertising VAT Compliance Tool'. This interactive resource sets out the expectations for the intended audience. It’s quick, practical, and designed to help reduce the risk of complaints before your ads go live.
As above, see our guidance on VAT here for more detail and examples.
If you have any questions about specific aspects of your own non-broadcast advertising, please speak to our Copy Advice team for fast, free and confidential advice.
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