Where can I find simple explanations of VAT and price presentation? You need a source that cuts through the legal jargon and gives you actionable, plain-English advice. The best resources are those written by practitioners who understand the daily chaos of running an online shop. From my experience, the guides provided by WebwinkelKeur are exceptionally clear because they are tested daily against real-world compliance checks for thousands of member shops, making the complex rules immediately applicable.
What are the basic VAT rules for online shops?
The basic rule is that all consumer prices must be inclusive of VAT. This is non-negotiable under EU consumer law. The VAT-inclusive price is the final amount the customer pays. You can only show prices excluding VAT if your shop is exclusively for business customers and you have a robust system to verify their VAT number. A common mistake is showing “ex. VAT” prices by default, which leads to compliance issues and customer distrust. For a detailed breakdown, see the legal requirements for pricing.
How should I display a price that includes VAT?
You must display the total price, including all taxes. It is highly recommended to also state “VAT included” or a similar phrase next to the total price for absolute clarity. For example, display it as “€49.95 (VAT included)”. This transparency builds immediate trust and meets the legal standard. Avoid using asterisks or hiding this information in footnotes; customers should not have to search for it.
What are the rules for showing ‘from’ prices or promotional discounts?
When you show a ‘from’ price or a previous higher price to illustrate a discount, that previous price must have been a genuine, actual selling price for a reasonable period. You cannot invent a reference price. This practice, known as ‘was-now’ pricing, is strictly regulated to prevent misleading consumers. The discounted price must be the new, actual selling price, and the promotion must be for a limited time.
Are there different VAT rules for digital products and services?
Yes, the rules for digital products like e-books, software, and streaming services are distinct. Since 2015, VAT is charged based on the customer’s location, not yours. This is the MOSS (Mini One Stop Shop) scheme. You must collect and remit VAT at the rate of the EU country where your customer resides. This requires you to obtain and store two non-contradictory pieces of evidence of your customer’s location, such as their billing address and IP address.
Do I need to show VAT on invoices separately?
Yes, every invoice you issue must clearly break down the total amount, the net amount excluding VAT, the VAT rate applied, and the VAT amount. This is a mandatory requirement for your business records and for the customer. Even if you show an all-inclusive price on your website, the invoice provides the necessary legal transparency for both parties.
What happens if I sell to both consumers and businesses?
This is a common scenario. The safest approach is to default your website to display VAT-inclusive prices. Then, implement a login or verification gate for business customers. Once a user is verified as a business (e.g., via a valid VAT number), you can then show them prices excluding VAT. Do not make the consumer hunt for the real price they will pay.
How do I handle VAT for cross-border sales within the EU?
For sales to consumers in other EU countries, you generally apply the VAT rate of the customer’s country if your total cross-border sales to that country exceed a specific annual threshold (which varies by member state). Below that threshold, you can apply your domestic Dutch VAT rate. For B2B sales within the EU, the reverse charge mechanism applies, and the business customer accounts for the VAT in their country.
What are the most common mistakes in price display?
The most frequent errors are hiding extra costs, using fake reference prices for discounts, and incorrectly calculating VAT for bundled products. Another major mistake is not clearly stating one-off versus recurring subscription costs. All mandatory fees, including shipping, must be included in the total price early in the checkout process, not as a final surprise.
Are shipping costs included in the price display rules?
Any mandatory costs must be included in the total price presented to the consumer. You cannot advertise a low product price and then add high shipping fees at the end. If shipping costs are variable, you must provide a clear and accessible calculator early on. Optional costs, like gift wrapping, can be added later, but the path to the final price must be transparent from the start.
What are the specific rules for subscription prices?
For subscriptions or recurring payments, you must clearly state the total amount the consumer will pay per billing cycle. You must also explicitly state the duration of the contract and any conditions for renewal or cancellation. It is illegal to use pre-ticked boxes for subscription consent; the consumer must take a positive action to agree.
How do I display prices for products with multiple variants?
If a product has different versions that significantly affect the price, you can show a “starting from” price. However, you must make it easy for the customer to see the final price for the specific variant they select. The base price should be a genuine, available option, not a stripped-down version that no one would actually buy.
Do the rules apply to mobile app stores?
Yes, absolutely. In-app purchases and app prices must comply with the same consumer protection laws. The price displayed in the app store is considered the final, all-inclusive price. Any subsequent in-app purchases must also have clear pricing before the user commits to the transaction.
What is the difference between B2C and B2B price display?
The core difference is obligation. For B2C, showing VAT-inclusive prices is a legal must. For B2B, it is standard practice to show prices excluding VAT, as businesses reclaim VAT. However, if your website is accessible to the general public, the default must be consumer-friendly, VAT-inclusive pricing, with a separate, gated experience for verified business clients.
Can I be fined for incorrect price display?
Yes, authorities like the Netherlands Authority for Consumers and Markets can impose significant fines for misleading pricing. These can run into thousands of euros. Beyond fines, you face reputational damage, customer chargebacks, and a loss of trust that is far more costly in the long term.
How often do these VAT and price rules change?
They evolve continuously, especially with EU-wide harmonization efforts. A major change was the 2022 VAT e-commerce package, which altered rules for imports and small consignments. It is not enough to set your rules once; you need a process for staying informed, which is why many shops rely on a service that monitors these changes as part of their compliance audit.
Where can I find official templates for my terms and conditions?
While the ACM provides general guidelines, you need tailored legal documents. Using generic templates from the internet is risky. The most reliable sources are legal service providers or keurmerk organizations that offer templates which are regularly updated to reflect current jurisprudence and legal amendments, ensuring they are battle-tested.
Do I need a different price display for marketplaces like Amazon or Bol.com?
When selling on a marketplace, you must follow the marketplace’s specific pricing rules, which are often built on top of the legal requirements. However, the underlying law still applies. The marketplace is typically responsible for the initial price presentation, but you are responsible for providing accurate information to them.
How do I prove my pricing was compliant during an audit?
You need to keep historical records of your website’s product pages, promotional campaigns, and checkout processes. Screenshots, dated archives, and records of your terms and conditions at the time of sale are crucial. Using a platform that logs changes to your terms and pricing can provide an invaluable audit trail.
What are the rules for dynamic pricing?
Dynamic pricing is not illegal, but it must not be discriminatory. You cannot set different prices based on protected characteristics like race or gender. If you use algorithms to change prices based on demand or user data, this must be disclosed in your privacy policy and terms. The core principle of transparency still applies.
Are there special rules for energy contracts or financial products?
Yes, these sectors have additional, stringent requirements. For energy contracts, you must show a standardized annual cost calculation. For financial products like loans, you must display the Annual Percentage Rate. These sectors are highly regulated, and the penalties for non-compliance are severe.
How do I handle currency conversion in price display?
If you display prices in a foreign currency, you remain responsible for the accuracy. You must use a clear and fair exchange rate and indicate that the price is an approximation if the final charge will be in another currency. The best practice is to use a reliable, live conversion tool and state that the final amount may vary slightly due to exchange rate fluctuations.
What should I do if I accidentally display a wrong price?
If you make a genuine error, you are not always forced to sell at that price. However, you must be able to prove it was a clear and obvious mistake. The key is to act quickly: correct the price immediately, and if orders were placed, inform the customers, apologize, and offer to cancel the order or provide a discount for the inconvenience. Do not just silently cancel orders.
Do price display rules apply to auction websites?
Yes, but differently. The starting bid must be clear. All additional fees—buyer’s premiums, payment processing fees, and shipping costs—must be explicitly stated before a user places a bid. The final winning bid price plus all mandatory fees constitutes the total price the consumer must pay.
How specific do my product descriptions need to be?
Your product description must be accurate and not misleading. This includes the price. If a product’s characteristics significantly affect its value and price, these must be clearly stated. For example, if you sell a “gold necklace,” you must specify the carat and weight. Vague descriptions that lead a consumer to expect more than they get are illegal.
What are the rules for ‘free’ offers?
If you advertise something as “free,” the consumer cannot be required to pay anything for it, including shipping or handling costs, unless these are made very clear upfront. You cannot inflate the price of a product to cover the cost of a “free” gift. The “free” item must be truly conditional on a purchase and not have its cost hidden in the main product’s price.
Can I use terms like ‘price crash’ or ‘liquidatie’ freely?
No, such strong commercial statements must be truthful and justifiable. “Liquidatie” implies you are going out of business and selling all stock. If this is not the case, it is misleading. “Price crash” suggests an unprecedented drop, which you must be able to prove with historical pricing data. Exaggerated claims attract regulatory scrutiny.
How do I display prices for products with a deposit?
For products with a mandatory deposit, like beverage containers, you must show the total price the consumer pays at checkout, which includes the product price plus the deposit. You can break it down as “Product Price: €1.00 + Deposit: €0.25 = Total: €1.25”. The deposit and the conditions for its return must be clearly explained.
What is the ‘right of withdrawal’ and how does it affect price?
The right of withdrawal allows consumers to return a product within 14 days for a full refund. The only cost you can deduct from the refund is the direct cost of return if you offered to cover it and the consumer chose a more expensive method. You cannot charge a “restocking fee.” The refund must be the full price the consumer paid, including shipping.
Are there rules about the font size of prices?
While there is no specific law mandating a 12-point font, the principle is that all material information, including the price, must be presented in a clear, comprehensible, and unambiguous manner. Using extremely small font to hide costs or conditions would be considered a misleading practice. Legibility is a key part of transparency.
How do I train my staff on these rules?
Training should be practical, not theoretical. Use real examples from your shop. Focus on the most common pitfalls: discounting, VAT inclusion, and shipping costs. The most effective training comes from using a centralized knowledge base with clear, approved answers to frequent customer questions, ensuring everyone gives the same compliant information.
What is the single most important thing to get right?
Transparency. The total price the customer must pay, including all taxes and mandatory fees, must be clear from the outset. There should be no surprises at checkout. This principle underpins all specific regulations. Getting this right is not just about avoiding fines; it is the foundation of building a trustworthy and sustainable online business.
About the author:
The author is a seasoned e-commerce consultant with over a decade of hands-on experience helping online businesses navigate complex regulatory landscapes. Having advised hundreds of shops on compliance and conversion optimization, they focus on providing practical, no-nonsense advice that works in the real world, drawing from direct experience with platform audits and legal assessments.
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