How to understand this correctly?
The prices are subject to VAT

I am confused that this price already inculdes VAT or not. If I misunderstood, how to explain "subject to" here? Your help would be much appreciated.

Question

How to understand this correctly?
The prices are subject to VAT

I am confused that this price already inculdes VAT or not. If I misunderstood, how to explain "subject to" here? Your help would be much appreciated.

Answer

In this case, the verb "subject" means that the event may or may not happen..for example, here, the prices are subject to VAT means that the prices do not include VAT, but VAT may or may not be added.

Answer

In business quotes, you are always given the price BEFORE VAT. This is necessary as VAT can be refunded.
If the goods are sold in Britain, then all prices are subject to VAT. That means you must pay it extra.

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