Extra Price Display

Part
01
of three
Part
01

Price Change - Korea

According to the K4E (Korea4expats) online presence, Korea includes VAT (tax) in the price of goods purchased. The Avalara VATLive website confirmed this and stated the standard VAT rate in Korea is 10%. We had further confirmation from a Korean till receipt in a store. On the receipt, we see VAT is inclusive in the price and not charged separately. We were only able to identify one Korean toothpaste advertisement with a price displayed. No separate VAT figures were visible on the advert. As VAT is inclusive, we could not find a brick and mortar shop displaying toothpaste prices with VAT. We found further evidence of the inclusive pricing of VAT on a Korean online shop. On the shop’s web presence, they stated the prices included VAT. For the hospitality industry in Korea, we identified that VAT was inclusive. A conference advertising available hotels online, displayed a separate column stating that VAT and service charges was included in the price. The InterContinental Hotels website displayed their Seoul COEX hotel room prices with no VAT visible. The required information is entered on the attached spreadsheet, row 2.

Hospitality Industry

As stated above, Korea includes tax (VAT) in the price of the goods sold. Through an advertised online conference in 2018, we see that VAT and service pricing was included in the hotel prices. This was further borne out by the hotel InterContinental Hotels Seoul COEX online sales site. The hotel only advertised the price of the room with no further reference to VAT or service fees.

Toothpaste

As stated above, Korea includes tax (VAT) in the price of the goods sold. As a result, we found no brick and mortar shop advertising toothpaste prices with VAT. An advertisement for toothpaste with no VAT displayed was identified. This lent support to the fact that VAT is inclusive in the price. We moreover found a sales receipt rom a brick and mortar f with the VAT displayed, but not as an additional cost to the customer. This meant it was included in the price of the goods sold. An online Korean sale site also clearly stating their prices included VAT (ss6). Please note, this site needs to be translated to be read in English.

Part
02
of three
Part
02

Price Change - Mexico

Both toothpaste purchased in a store and a hotel booked online have taxes/fees included in the price shown to customers. It is a legal requirement for both. However, online sites are not mandated on when they have to show the total price and it varies from site to site. The data is summarized in row 3 of the attached spreadsheet.

Toothpaste

Toothpaste in Mexico has a 16% Value Added Tax (VAT) added to the price, and the price displayed on the store shelf is the final price paid. It is illegal for the price to be increased at the time the customer is checking out.

According to Expatistan, the average price for a tube of toothpaste in Mexico is MEX$32. This was calculated by averaging nine prices. The Walmart site in Mexico has prices ranging from MEX$13.90 to MEX$84.50, and many of those were sets including more than one tube. That seems to confirm that the average price from Expatistan is reasonable. In the attached Google document, we provided a screenshot of toothpaste on the shelf in Mexico.

Online Travel

According to the Federal Consumer Procurator's office, which is responsible for consumer protection, Mexican sites that sell products and services online must provide the total costs and taxes. However, it does not specify when that has to be shown to consumers. The taxes charged on hotel rooms in Mexico include a 15% VAT and a 2% room tax.

To determine whether prices shown for online travel include fees from the beginning or only has them added at checkout, we conducted a search in Spanish to find Mexican travel sites. Two of the sites initially showed the price of a hotel room including tax, and one did not.

On Destinos Mexico, we searched for a room at the Ramada Cancun City hotel. The result showed a price that included taxes. There is a screenshot on the attached Google document.

The travel site Best Day was also searched for the Ramada Cancun City hotel and the price shown included taxes. We were unable to provide a screenshot for this, as we were given a file error when trying to access the image.

Finally, we engaged a colleague living in Mexico to provide an additional search and screenshot of an online travel site. This was the site for Hotel Monaco, a hotel in Mexico City. As can be seen from the screenshot, this hotel does not include taxes on the initial price page. However, the required total is shown on the checkout page.

In conclusion, it appears to be up to the individual sites when to include the taxes and fees, as long as the total is shown by the time the customer is checking out.
Part
03
of three
Part
03

Price Change - Britain

Our research found that the prices for hospitality (hotels) bookings do not change throughout the shopping journey in Britain and the prices for toothpaste also do not change throughout the shopping journey in Britain either. The information that we found about hospitality and toothpaste prices is included below and is also included in the attached spreadsheet. Also, we have included screenshots of the prices for the items/prices referenced in the spreadsheet and below within the attached Google Doc.

HOSPITALITY

The tax in Britain that applies to the hospitality industry is called VAT tax. That's because "VAT is a tax . . . [Britainians] pay on most goods and services." "VAT is normally included in the price you see in shops, but there are some exceptions."

To assess if/how the price changes throughout the shopping journey in Britain within the hospitality industry, we checked prices at two different hotels in London (The Arch London and Thistle Trafalgar Square). Before doing so though, we first ensured that VAT tax applies to the hospitality industry, which it does. Specifically, we looked at the first prices listed before we selected the rooms at the hotels and then looked at the prices after we selected the rooms.

For the room that we analyzed at The Arch London, the price listed before we selected the Superior Room was 318 euros. After we selected that room, the total price remained at 318 euros. Thus, VAT tax was included in the original list price since the price did not change.

For the room that we analyzed at Thistle Trafalgar Square, the price listed before we selected the Standard Double Room was 200 euros. After we selected that room, the total price remained at 200 euros. Thus, VAT tax was included in the original list price since the price did not change.

Those examples demonstrate that within the UK's hospitality industry, the price does not change throughout the shopping journey. That's because VAT tax was included in the original list price since the price did not change.

TOOTHPASTE

The tax in Britain that applies to toothpaste is called VAT tax. That's because "VAT is a tax . . . [Britainians] pay on most goods and services." "VAT is normally included in the price you see in shops, but there are some exceptions."

To assess if/how the price changes throughout the shopping journey in Britain for buying toothpaste, we checked prices at two different retail stores in the UK (ASDA and BritSuperstore). Specifically, we looked at the first prices listed before we selected the toothpastes and then looked at the prices after we selected the toothpastes.

For the toothpaste that we analyzed at ASDA, the price listed before we selected Oral-B Pro Expert Deep Clean Toothpaste was two euros. After we selected that toothpaste, the total price remained at two euros. Thus, VAT tax was included in the original list price since the price did not change.

For the toothpaste that we analyzed at BritSuperstore, the price listed before we selected Colegate Total Advanced Clean Toothpaste 75ML was 3.40 euros. After we selected that toothpaste, the total price remained at 3.40 euros. Thus, VAT tax was included in the original list price since the price did not change.
Sources
Sources