Why prices are shown net: it is not a presentational choice

Anyone arriving on a professional platform accustomed to consumer purchasing notices at once that prices are lower than expected, and the reason is that they are shown net of VAT.

It is not a presentational device: it is how prices are shown between businesses, and there is a practical reason going beyond convention.

For a professional, VAT is not a cost. It is a tax paid and then reclaimed, and which therefore does not affect the result of the business.

The number that matters for a purchasing decision is therefore the net one, and showing the gross would foreground a figure the professional would have to break down every time.

There is then a reason that becomes obvious the moment national borders are crossed. VAT rates vary from country to country within the Union, and the gap between lowest and highest exceeds five points.

Were prices shown gross, two identical products from suppliers in different countries would appear to have different prices even when sold at the same figure. The comparison would be distorted by taxation rather than by the product.

The paradox is that the seller's national rate does not apply at all in a purchase between verified businesses. Showing a gross price would mean displaying a tax that will never be paid.

The total is calculated at checkout, when the system knows both parties. The seller's country, the buyer's country and the state of VIES verification determine the treatment.

If buyer and seller are in the same country, domestic VAT applies. If they are in different countries and both verified, reverse charge applies and no tax is charged.

If the buyer is not verified in the European archive, they are treated as a final consumer and the seller country's VAT is applied. That is the situation the cart flags before payment, stating the sum involved.

This means the price shown is what you will pay if you are verified and buying from another country, while within your own country you will add the domestic rate and later reclaim it.

In both cases the figure on which you compare suppliers stays the same, and that is exactly why it is the one displayed.

In summary: for a professional VAT is a pass-through rather than a cost, gross prices would make suppliers in countries with different rates incomparable, the seller's rate often does not apply at all, and the correct treatment is calculated at checkout knowing both parties.