Important legal information for BHTA members about requirements for displaying VAT pricing in Google Ads

This article has been co-authored with legal input from Addleshaw Goddard and reviewed by two BHTA members.  

Under UK laws businesses, including British Healthcare Trades Association (BHTA) members, must ensure their Google Ads and other marketing materials are transparent and not misleading – particularly if they are consumer-facing.

Protecting vulnerable consumers

Many consumers purchasing from BHTA members—such as older adults, disabled individuals, and those with long-term health conditions—may be considered vulnerable consumers. These individuals may face barriers to understanding pricing structures, including VAT relief eligibility, so making clear and accessible information is crucial. Misleading or unclear pricing could lead to confusion, financial strain, and a lack of trust in suppliers of essential healthcare products.

Should VAT be shown in Google Ads?

• Consumer-facing advertising: If products are typically sold to the public and are subject to VAT, the advertised price must include VAT to comply with transparency rules. Omitting VAT could be considered misleading, particularly for consumers who may struggle with complex pricing structures.
• Products eligible for VAT relief: Many medical devices or mobility aids may be zero-rated for certain disabled individuals. However, vulnerable consumers may not be aware of VAT exemptions, making it essential for businesses to clearly state whether VAT applies and under what conditions a VAT-free price is available.
• B2B advertising: If targeting business customers and the majority of the customers are businesses, prices may be shown excluding VAT, but it must be explicitly stated (e.g., “+ VAT”) to avoid confusion. Ensure it is clear that it is a “trade price” or “business price”.
• Consumer and business advertising: If advertising to both businesses and consumers, at a minimum, the advertised price must include VAT (but also make clear where there any VAT exemptions).

Potential penalties for non-compliance

Currently, businesses comply with the Consumer Protection from Unfair Trading Regulations 2008.

From 6 April 2025

Failure to comply with the Digital Markets Competition and Consumers Act 2024 could lead to significant penalties, including fines of up to 10% of annual global turnover as well as individual penalties, compensation, and direction to change behaviour.

Conclusion

For BHTA members, ensuring VAT pricing is clearly displayed in Google Ads is likely a legal requirement but also a matter of ethical responsibility to protect vulnerable consumers. Given the complexities of VAT relief, businesses must take extra care in their advertising to ensure pricing transparency, accessibility, and compliance with consumer protection laws. Clear and upfront pricing helps prevent confusion, build trust, and avoid enforcement action (which is now led by the Competition and Markets Authority (CMA)).