VAT not included in advertised line rental price

pricey08

I've recently purchased a HTC One S from the carphone warehouse on Talk Mobile. The advert in the newspaper (which I still have) states that the phone is free and the tariff is £16/month. The contract I have signed also states this. I received a text this morning informing me that my bill of £19.20 is ready to view online. When I went online the bill stated that the £16 did not include VAT. The small print on the newspaper advert does not refer to VAT or additional charges anywhere. After searching on the HMRC website I found this statement:

Prices in advertisements, catalogues and price lists
Products advertised in outlets, magazines, on the internet, or shown in catalogues, price lists and other literature may be aimed at the consumer, businesses, or both. If they're only meant for the general public, they'll show you a price including VAT. This is a legal requirement.
If they're aimed at both consumers and businesses, they will usually show a VAT inclusive price, but may also show a price without VAT. The VAT inclusive price must be given equal importance, but read carefully to make absolutely certain you understand what price you'll pay.
Prices aimed only at businesses are usually shown with no VAT included. VAT will be charged on top of the price shown.

My understanding therefore is that I should only be paying £16/month not £19.20. Am I correct or does this legal requirement not apply to phone contracts? Has anyone else had the same problem as me? I don't think this is something that can be rectified with a member of staff in store, and may have to go further.

Any advice would be great.

DUTR

Scan the advert and post it, I bet it is clear.

NFH

HMRC are of course correct. 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. Therefore if you were sold the service at a distance (e.g. online or by phone), then the price did have to include VAT.

pricey08

DUTR wrote: »

Scan the advert and post it, I bet it is clear.

I don't have a scanner, but the small print on the advert reads as follows:

"All information is accurate at time of going to print. HTC One S free from £16 per month on TalkMobile new subscriptions and upgrades. Price stated is for a limited promotional period only. Pay monthly prices subject to credit check and minimum term of 24 month on selected networks and tariffs. Unlimited data and all other allowances relate to usage in UK mainland only. You may not use date for tethering or P2P and other exclusions apply. To ensure services can be enjoyed by all our customers, we may introduce a fair use policy at any time. See talkmobile.co.uk for full terms and conditions."

The only other text on the advert is

"This week's smart deal. Offer ends 14th June"

"HTC One S. Free phone £16 per month unlimited data"

"Geek squad service plans available from £11.99 per month"

"Carphone warehouse: instore; carphonewarehouse.com; mobile; 08000496138"

Clear enough?

grumbler

Something similar to this confusion: VAT on mobile phone bill ?

crispy_chris

Have you contacted CPW? It's probably just an error. You should only be paying £16 by the sound of that advert, assuming you applied before the promotion ended.

pooch

pricey08 wrote: »

I don't have a scanner,...

Maybe take a good quality photo then ?

grumbler

I don't see any point in posting the advert.
If the contract the OP signed said £16, then it has to be £16, not £19.20.

pooch

grumbler wrote: »

I don't see any point in posting the advert.
If the contract the OP signed said £16, then it has to be £16, not £19.20.

Maybe it doesn't include the VAT though, hence why a scan or photo of the contract would clarify matters

grumbler

The contract is much easier to quote than to post a photo of.

pooch

grumbler wrote: »

The contract is much easier to quote than to post a photo of.

But we know what the OP believes is in the contract.

The OP has come here for advice. I am sure they already know that if a contract states it's £16/month, then it's £16/month.

With a scan/photo of the contract we can assure the OP they are correct that the £16 includes the VAT