VAT Invoices

AlCymro

Just joined (but been an avid 'watcher' for ages) I currently have an Orange Home Max package (3 yrs+) - I am self-employed and have a small office at home and the business pays the Orange bills - I am now required to register for VAT and have been told by Orange that they cannot provide VAT invoices as this is a 'residential service'

What other providers are there that can provide a comparable package but with VAT invoicing. The use of broadband and phone does not justify paying a premium for a 'business package' - and why should I!!

Any thoughts?

JohalaReewi

check with HMRC.

http://www.hmrc.gov.uk/vat/managing/charging/vat-invoices.htm

AlCymro

Many thanks for the response. Unfortunately I have checked with HMRC and all Orange statements carry the rider 'This is not an Invoice for VAT purposes' - and because of this they will not be accepted.

As I see it my only option (if I wish to claim for VAT on my phone & broadband) is to change provider to one that can provide VAT Invoices

I have checked with BT and for a similar package (when you factor in the line rental levy) it is quite a bit more expensive!

JasonLVC

Orange are talking absolute rubbish...but then the idea of a telecom company not being straight with their customers shouldn't be a surprise.

The law is quite clear, any VAT registered business MUST provide a valid VAT invoice upon request. It is usual for telecom companies just to issue pro-forma (this is not a tax invoice) type invoices as this means they can delay paying VAT over to HMRC until a much later point in time.

Once they issue the VAT invoice, they have to pay the VATman. basically Orange just can't be bothered to print you off a proper invoice - I hear this problem time and time again and it is right up there with other bull such as Dixons telling you that faulty goods have to be returned to the manufactuerer, not the store and that sale items cannot be returned if they are faulty.

Suggest you give Orange another call and ask them that if they are charging you VAT, then the law says they must provide you with a VAT invoice upon request and that if they refuse, then you have the legal right not to pay the VAT.

I suspect you just probably got through to one of the myriad muppets employed by these people. You may get lucky next time.

AlCymro

I like your angle. I will certainly get back to Orange with this request. Will let you know if I have any luck - might be useful to others!

AlCymro

For info I have just sent the following email reply to Orange - we'll see!!

I have contacted HMRC and have received a very interesting response!

They state that - The Law is quite clear in that any VAT registered business MUST provide a valid VAT Invoice upon request by a customer. If you do not or refuse to provide a VAT Invoice as requested then the customer has a legal right not to pay the VAT charged. And HMRC would be very interested to know if Orange are refusing to provide VAT Invoices for services that they provide - to state that the service is for 'residential use only' is not a valid argument or a tenable Legal position.

Given the above guidance I no longer wish to terminate my contract but would rather look forward to receiving your response and to receiving valid VAT Invoices for the past 6 months.