is a broadband cease/cessation charge subject to VAT ?

6bar

hi,

having terminated my broadband account with vispa (i'm not migrating), they have issued a broadband Cessation Charge bill for £31.12 + £6.22VAT

by way of comparison, BT's T&C indicate that the broadband Cessation Charge is not subject to VAT,

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A cease charge of £30.00 (not subject to VAT) is payable ...
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google 'bt termcharges' to find the page this excerpt was taken from (sorry, MSE doesn't allow me the post the link as a newbe)


So my question is, should vispa be levying VAT on the cessation charge ?

thanks

Sooler

Probably best to ask HMRC

http://www.hmrc.gov.uk/vat/forms-rates/rates/goods-services.htm

http://www.hmrc.gov.uk/vat/managing/problems/getting-answers.htm

kwikbreaks

It's a service (Openreach disconnect the tie pair to the ADSL equipment) so I'm guessing it must be subject to VAT and the BT wording is imprecise - it should probably say that their £30 includes VAT.

Poor show though and worth questioning. Good luck.