Skype credit effectively 15% off when bought via iOS app

JJC1138

Update: As of 28th July, Skype have changed to charging VAT when you use your credit instead of when you top-up (Google "Skype VAT changes" for details), so the loophole below no longer works.

When you buy Skype credit via their web site you are charged 15% (Luxembourg) VAT on top of the top-up amount, so you pay £11.50 and get £10.00 credit. However, in the Skype iOS app you can buy credit in £2.99 bundles as in-app purchases, which you pay for through your App Store account. If you buy that way you pay £2.99, and you get £2.99 credit. Presumably the VAT still gets paid by Skype, but they don't take it out of your credit, so you effectively get 15% off.

Haiku

Thanks for posting this! I didn't know that.

You can also avoid the VAT by setting your country to something other than UK in your Billing Information page. The Skype Credit purchase will still go through.