VAT advertising advice for residential property professionals

Thursday 09 April 2015

Following an ASA ruling in November 2014 relating to how residential property services should include VAT, the Committee for Advertising Practice (CAP) have issued advice:

Sales
Percentage sales fees should be adjusted, as per the ruling, to include the current rate of VAT e.g. a sales fee of 2.5% + VAT should be advertised as 3%. Adding an “inclusive of VAT” type statement is optional.

Flat-rate sales fees should also be adjusted to include the current rate of VAT e.g. a sales fee of £495 + VAT should be advertised as £594. Adding an “inclusive of VAT” type statement is optional.

Lettings
All tenant and landlord fees should be advertised inclusive of the current rate of VAT e.g. a tenant reference fee of £200 + VAT should be advertised as £240. Adding an “inclusive of VAT” type statement is optional.

Click here for full details of the advice