Leaving UK indefinitely...months left on contract

grumbler

thefirs wrote: »

I can confirm that the no vat policy applies at Orange, so no myth there.

You seem to be missing the point of this comment. VAT is a government's policy not a company's policy.
If a car dealer has a 'no VAT' promotion this doesn't mean that they don't pay VAT to the tax-man. In fact it's just 1/6 discount.

Buzby

VAT applies on all contracted contracts, there is no 'waiver' - THAT is the myth. As Grumbler notes, it is not within the gift of the supplier to decide whether VAT is paid or not - and if a supplier agreed to reduce the amount due by the customer, then, VAT will also be reduced - but the customer will always be required to pay 20% on all contracted services.

thefirs

grumbler wrote: »

You seem to be missing the point of this comment. VAT is a government's policy not a company's policy.
If a car dealer has a 'no VAT' promotion this doesn't mean that they don't pay VAT to the tax-man. In fact it's just 1/6 discount.

You seem to be missing the point of my comment. The OP said he was on Orange, but you cited Voda policy.

The expression of VAT as a separate charge is academic to a retail customer anyway, but Orange do not seem to think its non-application in these circumstances to be urban myth:

Charges not subject to VAT = 22.47
Charges subject to VAT = -2.90
VAT at 20% on -2.90 = -0.58

From my final bill with Orange, Oct 2011

grumbler

Thanks, this is really valuable information about Orange and VAT. Something that I've never seen before. Indeed it was pretty academic so far:
Paying off contract early....
A very quick question re; VAT and termination