VAT guidelines on displaying, advertising and quoting prices

BASSETERRE, ST. KITTS, OCTOBER 29TH 2010 (CUOPM) – The Tax Reform Unit has been providing information of the requirements by a business for displaying, advertising and quoting prices inclusive of VAT under Section 111 of the VAT Act, No.3 of 2010.
 
The Tax Reform Unit said the information in the memorandum issued however does not replace the law found in the VAT Act, No.3 of 2010 and its Regulations.
 
It advised businesses that as it may not completely address their specific and particular operation, the Act or appropriate Regulation must be referred to or contact can be made with the St. Kitts and Nevis Inland Revenue Department VAT Unit for more information.
 
In its series of VAT Guidance Series No.3 Tax-Inclusive Pricing, it states
 
(1) Where a registered person offers goods for retail sale
 
(a) the person must comply with the pricing methods set out in this Guidance Series and
 
(b) if some of the goods are taxable at the standard rate, while others are zero-rates, not taxable, or only partly taxable, the person must clearly indicate to customers how much tax is included in the price of the goods.
 
(2) For the purposes of paragraph (1) above:
 
a. if it is feasible, where goods are taxed at the standard rate the person shall indicate on price tags, tickets, or other price marks that the price is tax-inclusive;
b. if it is not feasible to include the information required by paragraph (a), the person may choose some other method of identifying how goods are taxed, including—
 
(i) using colour coding price tickets for taxable, zero-rated, and other supplies, or
(ii) by asterisking taxable supplies,
 
so long as a clear explanation of the method used is displayed prominently at such places as are necessary to enable customers to identify, before they enter into a transaction, whether tax has been included in the price of the goods;
c. In the case of supermarkets, department stores, and other stores selling directly to the public, it is sufficient for the purposes of paragraph (b) to state the total price (including any tax) on price tags, and to identify taxed items on a till receipt, by placing a distinctive mark such as an asterisk next to each taxed item and including a statement on the receipt that the marked items include tax;
 
d. the following pricing methods are not acceptable for price tags, tickets, price marks, or other pricing information, or for the purposes of advertising prices:
 
(i) a statement of the tax-exclusive price alone, or
(ii) a statement of the tax-exclusive price and a statement that the price is tax-exclusive; or
(iii) a statement of the tax-exclusive price and a statement that tax will be added, even if the amount of tax or the rate of tax is specified.