VAT on mobile phone bill

Libra1975

I have just bought a new phone (HTC One S) using Phones4U on an Orange Panther deal. The deal was £20.50 per month, when I bought it it presented it as the final monthly price of £20.50. No where did I see VAT mentioned. I have just got the first bill. £24.60 including 20% VAT.
I presume they can do this? (I am out of the 7 day period to send the phone back unfortunately)

Thank you

grumbler

It may be just a coincidence as the billing month starts normally not on the same day as the contract and the first bill covers more than one billing month.

What does the bill actually say?

Libra1975

That was my original thought but checking the bill it is as clear as day
Charges subject to VAT 20.50
VAT at 20.00% on £20.50 4.10
Total charges for this month £24.60

reclusive46

Doesn't everything in the UK have to be advertised with VAT? Pretty sure its probably a coincidence and the longer month has meant it is 20.50 without VAT.

grumbler

Libra1975 wrote: »

That was my original thought but checking the bill it is as clear as day
Charges subject to VAT 20.50
VAT at 20.00% on £20.50 4.10
Total charges for this month £24.60

And what are these "Charges subject to VAT 20.50" for? What dates?

Also, what did the confirmation e-mail form p4u and the paperwork say?

NFH

reclusive46 wrote: »

Doesn't everything in the UK have to be advertised with VAT?

According to Article 1 of the Price Marking Order 2004 and Regulation 7(1)(a)(iii) of the Consumer Protection (Distance Selling) Regulations 2000, when prices are given to consumers, VAT must be included on prices of goods always and on prices of services online or by phone. Prices given primarily to businesses do not have to include VAT.

Libra1975

Grumbler thank you, it is as you suggested another part month.
Basically the non-vat price half month PLUS the non-vat full month add up to £20.50 (which is what I thought I was paying) they then add on the VAT to both the non-VATed parts which equaled £24.60 which looks on the final bill to mean they just added VAT to the baseline monthly cost.
If that makes sense?

Thanks for your help.

grumbler

And the coincidence was that "another part month" was 30/5=6 days....