Understanding VAT in Simple Terms
VAT (Value Added Tax) is a government tax applied to most goods and services in the UK – including salon supplies.
All professional salon products must legally include VAT at the current rate (20%). Retailers cannot simply choose to remove or ignore VAT, as it is required by law.
At SalonServe, we believe it’s important for every customer to understand how this works, especially when promotions in the industry are described as “VAT-Free.”
How “VAT-Free” Events Work in the Industry
Across the professional hair and beauty industry, “VAT-Free” events are common. They sound like VAT isn’t charged – but VAT is always included by law.
To comply with the law, we must still charge and show VAT on your invoice. VAT is applied to your order at the current rate, but during a “VAT-Free” sale, we offer a discount equivalent to not paying VAT.
For example:
If you order an item costing £100.00 excluding VAT, the total you would normally pay is £120.00 including VAT.
During a VAT FREE sale, we discount the item to £83.33. Then, when VAT is added, the total you pay is £100.00 – the same as the original price excluding VAT.
In other words, VAT is still charged, but the discount effectively cancels it out, giving you the same saving as if you hadn’t paid VAT at all.
So a “VAT-Free” sale isn’t about removing VAT – it’s a 16.66% price reduction that results in a total equivalent to the pre-VAT amount.
Why This Creates Confusion
It’s easy to see how the ‘VAT-Free’ terminology can be misleading. Customers often:
- See VAT appear at checkout even though the event says “VAT-Free.”
- Expect a 20% discount but receive 16.66%.
- Find that some items are excluded from the offer.
- Notice delivery thresholds or discount codes no longer apply because the ex-VAT total has changed.
- Feel frustrated or unsure about what they are really paying.
- Discover that, in some cases, prices may be increased shortly before a “VAT-Free” sale, meaning the apparent discount isn’t always as big as it seems.
These promotions aren’t wrong, but the terminology can be confusing. That’s why SalonServe focuses on being clear and upfront whenever we use the term.
Salonserve’s Approach: Straightforward, Honest Promotions
At Salonserve, we believe in clarity over clever marketing.
When we say “VAT-Free,” we mean it’s a genuine discount equivalent to the VAT amount - and we make sure our customers know exactly how it works before they buy.
“SalonServe believes in clear, honest pricing and straightforward savings that customers can trust.
When we run ‘VAT-Free’ promotions, it simply means we’re offering a discount equal to the value of VAT, so customers enjoy genuine savings without confusion. We always communicate clearly and openly, so there are no surprises at checkout.”
We’re not changing how VAT works - we’re changing how it’s explained.
Our goal is to make shopping simple, transparent, and fair, so every customer understands what they’re getting and why.
The Benefits of Transparent Pricing
By being open and consistent, we make it easier for customers to shop with confidence.
- No surprises at checkout – you’ll always see clear pricing and savings.
- Predictable delivery thresholds – free delivery and offers stay straightforward.
- No confusing fine print or hidden terms.
- Genuine value – clear savings that mean exactly what they say.
- All of our bulk buy, multi-buy and quantity discount offers still apply and will never be excluded from our “VAT-Free” sales (unless clearly stated otherwise).
We want every SalonServe promotion to feel fair and rewarding - never complicated.
In Summary
All “VAT-Free” events use the same principle, but not all explain it clearly.
At SalonServe, we’re committed to honesty and transparency. We believe customers deserve to understand exactly how a promotion works and what their real saving is.
That’s why we always communicate openly about our “VAT-Free” events - great savings, clearer messaging and genuine trust.