VAT reduction When? Is this a rip off?

theoilyone

To day I paid by direct debit three bills one to Sky another for o2 Broadband and neither of these companies had implemented the Goverments VAT reduction of 2.5% to 15%. Do you have to phone every company you have a direct debit with to ask for the VAT reduction also I have purchased three items online and NO vat reduction was given. Some of these larger companies should have been able to implement these changes overnight and this is yet another inexcusable action. They could make millions by not giving this reduction. My Advice Phone all your direct debit and standing order holders now and ask for the VAT reduction. Come ON Martin talk about this!!!!!:T

Kavanne

I got an email about my o2 phone dd being reduced in line with VAT reduction...

Noz

This is the contents of a text message I recieved last week:
"O2: Just so you know, from 1st December 2008 O2 customers will benefit from the new 15 per cent VAT rate. For more details go to o2.co.uk/VAT"

smeef

VAT is payable at the rate at the time the service was provided (according to my accountant DH) not at the time you pay the bill, therefore if you are paying for a service you received before the VAT changes you don't get a reduction on that bill.

And don't forget not all items you buy are subject to VAT (e.g. books) so you won't see a difference in price on those.

JCS1

theoilyone wrote: »

To day I paid by direct debit three bills one to Sky another for o2 Broadband and neither of these companies had implemented the Goverments VAT reduction of 2.5% to 15%. Do you have to phone every company you have a direct debit with to ask for the VAT reduction also I have purchased three items online and NO vat reduction was given. Some of these larger companies should have been able to implement these changes overnight and this is yet another inexcusable action. They could make millions by not giving this reduction. My Advice Phone all your direct debit and standing order holders now and ask for the VAT reduction. Come ON Martin talk about this!!!!!:T

If you paid by Direct Debit, how would you know the VAT rate? Doesn't this only get put on the invoices that they issue with a Direct Debt reconcilation?

And don't forget, it's only a saving of £1-85 per £100, so companies are unlikely to change direct debits overnight - despite what you say, the VAT reduction has meant a lot of work - it cannot be done "overnight".

And as smeef states, its when the services were provided that is key - not when you pay.

smcaul

Dont forget that for things like mobile bills and tv like sky and virgin you are actually paying for the services in advance. So for a mobile bill your line rental is normally paid in advance and your calls in arrears, so an adjustment should show in your next bills!!