The shop was correct to charge you VAT on your purchases. All hair and beauty wholesalers will operate this way.
By law, VAT is added to all stock prices when you buy from any shop that has a turnover that is above the VAT threshold. When you buy from Salon Services online, the price you see advertised for each item is the basic price minus VAT. When you come to pay for your basket of goods, whether online or in the store, the VAT will be added to the final bill.
When you buy a furniture product from Dunnes or IKEA for instance, as you are a customer, the VAT (23%) is automatically included in the retail advertised selling price. If you look at a few receipts for goods you’ve bought (not food), you will see the basic retail price and the amount of VAT being charged, is broken down on the receipt, before the final total figure.
If you are operating as a Self employed business owner and have reached the VAT threshold (your takings have exceeded €37,500 - service providers only), you will have to start charging your clients VAT. However, when you purchase products from the wholesaler, the VAT you pay on supplies for your business charged by the wholesaler can be deducted in your tax return. By making it clear what the separate VAT costs are, it makes it easier for the self employed person to manage their tax return more efficiently.
The Trade card simply allows you to purchase products in a wholesalers. The benefit of using a wholesaler is the range of professional brand products they stock, you can’t pop into your local high street shop to purchase S-Pro brand products and other brands tend to be cheaper than buying from your high street pharmacy.
When a wholesaler runs a “VAT-free” promotion, they still by law have to charge you the VAT on the goods, but they give you a discount off the retail price equivalent to the VAT being added.
PLEASE NOTE: The above figure apply to the Republic of Ireland, not the UK where VAT thresholds and rates are different.