Sky overcharging VAT for millions?

skelt6or

My December bill states that VAT will be included at 17.5% because I pay in advance for my TV package.

If the invoice is raised in December, before the rate rise in January, shouldn't I be paying 15%?

Is this right? I'm sure I am not alone with this.

:mad:

annielove_3

Is the bill not pro rata so u will be paying 15% up until the 1st and then 17.5% there after.

skelt6or

No. The charges have been increased by Sky's rounded 50p or £1 if you subscribe to sports/movies for my December bill. There is no pro rata mentioned anywhere in the bill.

I also have a current bill with BT but they have specifically quoted that any charges raised before the 1st of Jan 2010 will be at 15%.

skelt6or

Robert2009 wrote: »

Sky just took a DD for £18.82, last month it was £18.50 so I suppose next month it will be £19.

Since last Dec when I was paying £18 they have taken £17.50, £16.68 £18.15 and £18.50.

If you want the channels Sky provide you have to pay the money.

Rob

Do you work for Sky by any chance?

pelirocco

Robert2009 wrote: »

Sky just took a DD for £18.82, last month it was £18.50 so I suppose next month it will be £19.

Since last Dec when I was paying £18 they have taken £17.50, £16.68 £18.15 and £18.50.

If you want the channels Sky provide you have to pay the money.



Rob

That wasnt the question

Its a bit of a grey area OP , vat should be raised at the date of service , so as you are paying for Januarys provision of sky that could explain why .........what is the date on the invoice ? becuse if its december I am just curious as to how they allow for the change in VAT on their Vat return ..............just thinking aloud here because the change over in Vat is a bit of a logistical nightmare for a while ( talking from experience

skelt6or

If I were to buy a chicken on the Internet today I would be charged 15% VAT. If this item isn't going to be delivered until the middle of January, I still only pay 15%.

No 'ifs' no 'buts'. So why are Sky different?

WestonDave

Having been caught on this one at work, I went to the trouble of checking this out with HMCE.

Basically if the service you are receiving is after the date of change (i.e. January) then assuming some anti avoidance provisions don't apply, the supplier (i.e. Sky) has the option to use either rate if invoicing before the date of change. The situation at work arose over an annual subsciption invoiced in November for the year from 1st January - apparently invoicing at 17.5% is correct but not strictly necessary.

It is worth pointing out however that it has no benefit to Sky - whatever VAT they charge you, simply gets passed on to HMCE as part of their VAT payment.

Markie11

This might make it a lot clearer for you http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-rise-guidance.pdf#sec411 particularly section 14.2.1 with your internet purchase. If your goods are delivered after Jan 1st 2010 then your tax point is 17.5%.

Services such as Sky are mentioned and it looks as though they are following the book.

1984ReturnsForReal_2

Markie11 wrote: »

This might make it a lot clearer for you http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-rise-guidance.pdf#sec411 particularly section 14.2.1 with your internet purchase. If your goods are delivered after Jan 1st 2010 then your tax point is 17.5%.

Services such as Sky are mentioned and it looks as though they are following the book.

It may or may not help but as section 14.2.1 doesnt even exist then you can pretty much count on it that you havent made it any clearer...

1984ReturnsForReal_2

Anyways if the advance payment is due to be paid on or after the 1st January VAT due on the payment is 17.5%. If the advance payment is paid prior to 1st Jan then 15% is due.

See section 2.6 on above link mentioned in post number 9.

jem16

1984ReturnsForReal wrote: »

It may or may not help but as section 14.2.1 doesnt even exist then you can pretty much count on it that you havent made it any clearer...

Yes it does exist - have another look. It's just under section 14.2.