Orange VAT adjustment

diamonds

no it would depend on vat rate of more than 15% charged, its not set by companies & the amount collected is passed on to HM government, charging/making a penny profit more than government SETS rate at would be deemed as illegal by any court

a price increase of 2.5% would get you out of many T&C of many contracts, thats why companies are not stating such, 15% is the going rate, tell any company you intend small claims court for the 2.5% & you will get a refund - not worth the publicity & massive amounts of customers demanding 2.5% back

grimlea

but orange are saying their vat rate is 15% - not 17.5%. They are then passing that 15% to hmrc.

its a bit confusing as when i top up £10 its a £10 top up, its not a nine pound eighty or ninety odd (sorry I can't be bothered to do maths at this time of night). 15% of that orange charges as VAT which orange then pass on. Yes orange are 2.5% better off - yes i think thats bad & I hope ppl can fight them. But in reality all Orange will say is that the VAT they are charging is 15% - which is what they have passed on.



lets be fair, it is legal, but its a bit of a cop out on oranges behalf & it shows what they think of their customers

grimlea

diamonds wrote: »

tell any company you intend small claims court for the 2.5% & you will get a refund - not worth the publicity & massive amounts of customers demanding 2.5% back

its gonna be a very small claims court for claiming 2.5% on a £10 top up. I think I would be tempted to let the customer go through with it & let the judge decide if the customer is wasting courts time

[Deleted User]

Why are people saying this is/could be illegal? They have the right to charge what they want!

grimlea

billbennett wrote: »

Why are people saying this is/could be illegal? They have the right to charge what they want!

exactly, they are charging vat at 15% & paying hmrc 15% - no laws broken

fiscalfreckles

I don't think there is anything illegal here - but the "offer" of phone fund credit is one that only some customers will be use , whereas the small amount of extra credit supplied previously was given to all Orange customers.

So it's not fair. Unless you plan on getting a new orange phone in a few months!

matty538

Iv not had a text from Orange yet and Im still getting my 2.5% back (topped up yesterday) so when does this start.

proplusplus

matty538 wrote: »

Iv not had a text from Orange yet and Im still getting my 2.5% back (topped up yesterday) so when does this start.

1st post,
2nd line:



Hi From Orange. From 11 Feb, every £10 top-up gets you £1 towards a new phone with Orange Phone Fund. This replaces the VAT adjustment. See https://www.orange.co.uk/fund

proplusplus

reheat

I'm involved in the same issue with Orange. It's my VAT rebate ... not theirs to steal or barter with! 10% towards something I don't want is worth 0% to me. Regardless of the legalities, the 2.5% is not theirs to take as pure bottom-line profit, so any offers should be in addition to, not instead of, the VAT rebate.

Why is it I wonder that marketing people have so much difficulty perceiving moral and ethical issues from their customers' perspective? :rolleyes: (Answers on a postcard please ... to Orange? ).

Orange are not alone though ... Milletts (the outdoor people) are still charging the same 17.5% prices, meaning they take all their customers' VAT rebate as pure profit for themselves.

GrindStevesGears

well... im annoyed in what orange have done to their loyal customers... but then, i am pleased that they have done this! I am finally looking elsewhere for better deals!!:D