Price displays and receipts under the CPA
What South African price displays and receipts must show under the Consumer Protection Act, VAT-inclusive prices, and checking your till slip.
By Achekam · · 4 min read · For Running a business businesses in South Africa
Two of the most common consumer complaints in any shop are about the price on the shelf and the slip at the till. The shelf said one thing and the till charged another. The promotion in last week's flyer was not honoured. The receipt was a strip of numbers with no way to tell what was bought or who sold it.
South Africa's Consumer Protection Act deals with both ends of the sale. This guide sets out what the dtic says about displaying prices and promotions, what a receipt must show, how VAT fits in for registered vendors, and how to check what your own till produces.
Prices in full view, and the lower of two prices
The dtic's booklet on the Consumer Protection Act says suppliers must display prices of goods and services in full view. It also says a supplier may not charge the higher of two displayed prices.
The second rule is the one that costs money when shelf labels are not kept up to date. If the shelf label shows one price and the product sticker another, the customer pays the lower. A price change that reaches the till system but not the shelf therefore becomes a loss on every sale until someone notices.
Practical habits help: update shelf labels and the till at the same time, check a sample of labels against the till each week, and remove old stickers when prices change.
Promotions that state how long they run
The same booklet says a supplier must state how long a promotion in a catalogue or brochure lasts, or honour the price. A flyer that advertises a special without an end date leaves the business open to customers holding it up weeks later.
Print the start and end dates on every promotional price, in the flyer and on the shelf, and make sure the till price changes back on the stated date, not before.
What a receipt must show
The dtic's booklet says consumers have the right to receipts showing:
- the supplier's contact details;
- the supplier's VAT registration number;
- a description of the goods;
- the date;
- the unit price;
- the quantity; and
- the total price, including taxes.
The CPA's section on sales records sets out the written record a supplier must give a consumer for every transaction and what it must contain, and is the source to check against. The National Consumer Commission adds the wider principle: the CPA obliges businesses to provide clear, accurate information, and gives consumers redress through warranties, refunds and dispute resolution for faulty products or misleading conduct. A clear receipt is part of that information, and it is also the customer's evidence when they come back with a fault.
VAT-inclusive prices for vendors
For VAT-registered businesses, a second rule shapes the displayed price. SARS's VAT 404 Guide for Vendors says all prices charged, advertised or quoted by a vendor must include VAT at the applicable rate, which it gives as 15% for standard-rated supplies at the time of writing.
So the shelf price for a registered vendor is the price the customer pays, VAT included. A label showing a price "plus VAT" does not meet that rule. Businesses selling services, such as spas or salons, face the same question on their price lists; see spa prices including VAT. When a customer asks for a tax invoice rather than a till slip, different content rules apply, covered in full or abridged tax invoices.
What Achekam's till receipt shows
If you sell through Achekam's till, here is what the receipt does today:
- It is made from the posted sale. The till receipt is a PDF produced by the server from the sale as posted, so it matches the books.
- Payments and VAT. It shows every payment, VAT by rate and the business's tax number.
- Delivery. It can be printed, downloaded or e-mailed to the customer.
- VAT per line. Each till line is taxed at its product's own VAT rate, so a 0% product stays at 0%, and other lines at South Africa's approved standard rate. The business sets whether shelf prices include VAT; a registered vendor should set them to include it, in line with SARS's rule.
One limit to know: the paper-size, logo and footer options on the receipt screen change only an on-screen mock-up, not the receipt itself. Do not rely on that screen to add details to the printed slip.
Because the CPA list asks for more than payments and VAT, print a sample receipt and hold it against the list above. Check that your business's contact details, a description of each item, the date, the unit price, the quantity and the total including taxes all appear, and raise any gap before it matters at the counter.
A pricing and receipt check
- Shelf prices visible for every item on display.
- Shelf, sticker and till prices agree; where they differ, the lower is charged.
- Promotions show start and end dates, in print and on the shelf.
- Prices include VAT if the business is registered.
- A sample receipt shows contact details, VAT number, description, date, unit price, quantity and total.
- Staff know that a customer charged the higher of two prices is refunded the difference.
Walk the floor once a week with a handful of products and a till slip. It is the simplest way to find a pricing problem before a customer does.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
