Price plan costs - VAT

cazdee

A friend of mine works for 3 and has offered me a pretty good deal, pretty much what i'm on with orange, for £15 cheaper. When i asked about VAT, he said that when 3 say it's a £25 a month contract, you only pay £25 per month. I'm currently on a contract that is £5 pm with orange, but with VAT, I'm paying about £40...

Can 3 be trusted on this...is there any other network that do this, or am igetting the wrong end of the stick???

OTTO

You are probably on a business tariff on Orange, on which the vat is calculated.
On consumer tariffs the vat is included.This is the most common tariff used by most people, so I feel you should be A ok.

cazdee

OTTO wrote: »

You are probably on a business tariff on Orange, on which the vat is calculated.
On consumer tariffs the vat is included.This is the most common tariff used by most people, so I feel you should be A ok.

Not sure why i would be on a business tariff... been with orange for 4 years or so now?

mobilejunkie

VAT on £5 is 87 pence. Your extra charges have nothing at all to do with VAT. Mobile contracts are the same as anything else which is liable to VAT. It's included for retail customers but excluded and added for business ones. Not sure why VAT is an issue.