VAT not included in advertised line rental price

Neil49

I've just checked the latest Smart Deal for the Galaxy Ace and have gone right through the process up to checkout and there is no mention that vat is extra. The final checkout price was £7.50 for the 24 month contract.

Their terms and conditions state that all prices include vat unless stated otherwise and nowhere in the process did it state otherwise.

I think you have a strong case against them.

Good luck.

grumbler

pooch wrote: »

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

I think if they signed the contract they must have a copy of it. If so, this is a matter of fact, not belief.
Simple text is easier to quote than to photo and post. It is not the case for the advert, but the advert is irrelevant if the OP has signed a contract and has a copy of it.

BargainMad_3

Isn't there something that if it is a "BUSINESS" tariff then the tariffs can be advertised ex VAT (e.g. as £20 a month instead of £24). Of course VAT is charged but in the course of running a business the VAT can be reclaimed by the business so the "net" cost (after claiming VAT back) would be the £20 advertised.

If that is the case (and I am not saying it is) then that might explain it.

Wywth

pricey08 wrote: »

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.

As grumbler says, as you have a contract that states it's £16/month, then that's all you have to pay for the line rental.

I'm not sure why you bothered referring to the advert of even checking up on legislation relating to how prices should be shown on advertisements.

I suggest you contact the supplier and dispute the bill as it's not in line with the contract you agreed with them.

waterstar

Q for the OP: is this your first bill on this contract?

If so it may be that the billing period is longer than one month. This is normal with many mobile companies and it is what happened with the first bill I received on my TalkMobile account.

Basically on your first bill you pay after the event for that first period, often 5 or so days, and than you pay in advance for the next month.

So if your bill was for 6 days PLUS one month in advance it would indeed show £16.00 NET with VAT added of £3.20.

This detail should be available on your bill.

BargainMad_3

waterstar wrote: »

Q for the OP: is this your first bill on this contract?

If so it may be that the billing period is longer than one month. This is normal with many mobile companies and it is what happened with the first bill I received on my TalkMobile account.

Basically on your first bill you pay after the event for that first period, often 5 or so days, and than you pay in advance for the next month.

So if your bill was for 6 days PLUS one month in advance it would indeed show £16.00 NET with VAT added of £3.20.

This detail should be available on your bill.

Yes the OP should check if that is the case.


Have checked the website out and it is certainly aimed at consumers so VAT is included in the £16 and CPW advertise their business mobiles inclusive of VAT as well so a pro-rata bill sounds more like it.

pooch

grumbler wrote: »

I think if they signed the contract they must have a copy of it. If so, this is a matter of fact, not belief.

Absolutely! However the OP is requesting advice and before anyone can advise for certain on what that contract says, we really need to be sure of its entire contents.

grumbler wrote: »

Simple text is easier to quote than to photo and post. ...

Oh, I don't know if I can agree with you there, sorry.

Contracts can be quite lengthy and to reproduce word for word the entire contract without errors is not that simple. It would certainly take much longer, even for the best speed typist, than to host an image of the original.

I'll await a quality image before verifying to the OP that they are correct, if you don't mind.

victor2

OP might have a good point. From Carphone Warehouse T&Cs (online):

3. Price and Payment

3.1. The price of the Goods or Services (if any) shall be the price of which we inform you prior to accepting your order. Prices include VAT at current rates unless stated otherwise.

So according to that, there would have to be a statement saying VAT was excluded, which with the HMRC details, points even more to looking really closely at the advert.

DUTR

victor2 wrote: »

OP might have a good point. From Carphone Warehouse T&Cs (online):

So according to that, there would have to be a statement saying VAT was excluded, which with the HMRC details, points even more to looking really closely at the advert.

Why I ask for the source of the advert is that I see often in the Metro news deals on T Mobile and they do not include VAT

robbies_gal

could be a pro rata billing rather than a normal month to month first one is always more