Remember, remember!
The fifth of November, the ASA ruling about VAT and estate agency fees…
OK, so I’m clearly not a poet, but… this is a subject that repeatedly annoys me. It’s been nearly 7 years since the ASA ruled that agents fees should include VAT when quoted. To sum up the ruling, the ASA said:
“Because it was possible for a VAT-inclusive fee to be calculated in advance as a percentage, we considered that the stated percentage fee should have included VAT. Because that was not the case, we concluded that the ad was likely to mislead.”
Since this ruling, I’ve always ensured that any fee I quote (whether verbally, or in writing etc…) includes VAT. Why…? Well, not only because it’s clearly best practice, but also because it makes sense! As an individual, you have no interest in what the fee is without VAT. Unless you’re a VAT registered company, you can’t claim this back. All you need to know is the bottom line.
As I walk up and down Castle Street, I still see advertisements in some windows with ‘+ VAT’ on them. It’s always smaller, of course… with the big headline fee in a massive bright font.
Of course, the only reason you’d want to do this as an agent is to hook someone with a cheaper looking fee.