BskyB charging 17.5% VAT on December invoices

sparkyman2

Hi,

Not sure if this is legal, or if you would care to comment on this issue, but......

.......I've just been advised by BSky Broadcasting that the VAT rate will increase from 15% to 17.5% on 01/01/10. As I pay for my subscription in advance, Decembers invoice will be billed at 17.5% VAT ?

Surely they cannot levy the January 2010 VAT rate on a December 2009 Bill ??

Anybody care to comment on the legal aspect ?

Many Thanks

macman

The relevant date for VAT as far as an invoice is concerned is the tax point, not the invoice date. No idea what Sky do on their invoices, as not a customer.

reehsetin

don't they bill one month in advance? so december's bill is for january's service? therefore the VAT would be correct?

macman

Not if the tax point is prior to 1/1/10.

jem16

Sky's answer to my email as to why they were charging the increased VAT in December's bills.

Thank you for your email about the VAT increase.
As from the 1st of January the VAT will increase back up to 17.5% therefore your Sky package will go back up in price also. We bill one month in advance so your next bill due on the 28th December we will charge you VAT rate of 15% at the moment from then until 1st January and from then forward it will be at 17.5%
I hope this helps with your enquiry.

Anything I should reply to them to clarify the tax point?

macman

As long as the tax point is on or after 1/1/10 then yes they can increase the VAT, the invoice date is irrelevant.
The way they've worded it does seem incorrect, but I can't believe a company with the resources of Sky would fail to grasp a simple aspect of VAT legislation.

jem16

No mention of tax point on the bill.

leveller2911

I'm VAT registered and as far as I'm aware its the date at which the invoice is raised thats important.As the current rate is 15% they should have chrge you that.
If the invoice is raised on or after the 01/01/10 then its 17.5% ..........I think they are wrong,it makes no difference when the bill is paid,DD taken from an account ,the important thing is the date the invoice is "raised" (dated).............Stand to be corrected......

donnac2558

I am with Virgin but my December bill which charges TV/Boardband ahead to January. But my VAT is still 15% for the December bill.

RichardCW_2

It is a long time since I was involved in VAT, but unless there have been changes to the rules, I believe your invoice is wrong because, as others have said, the tax point is the date of the invoice in this case.

There is an easy way to check. Phone HMRC's VAT helpline on 0845 010 9000 and explain what has happened. You will be given an authoritative ruling over the phone which you can then take to BSkyB. If BSKyB doubt you, all they need to do is contact HMRC for themselves. Remember, Sky has nothing to gain by overcharging, since whatever they collect has to be accounted for.

This really does work, Around 9 years ago I used this method to get a refund from BT who were wrongly charging VAT on mobile calls from the USA .