Early Cancellation

Techhead_2

keith1950 wrote: »

I found out when I cancelled a couple of contracts years ago.

A Vodafone manager told me that, as VAT is charged on goods and services, then when that service is cancelled ,VAT is not chargeable as they are no longer providing the service !

Please don't start this urban myth going around again. There are people on here who will honestly believe it. For a short period of time, Vodafone and Orange did tell customers that this was the reason. However, they soon realised this was incorrect when Ofcom ruled on the issue.

You can see how a network must calculate the fee on the Ofcom website. Basically they can charge a fee , the maximum being remaining months x monthly rate. Any discount is simply to show that they can mitigate the costs of ending the contract (by reselling the service etc).

Pinkdebster

Thank you everyone for your help. Three have confirmed that an error was made and all I have to pay is the remainder of the Contract, which is what I expected. It just helped to know I wasn't going mad before I rang them! Thanks again. Enjoy your Bank Holiday x

grumbler

Techhead wrote: »

Please don't start this urban myth going around again. There are people on here who will honestly believe it.

It's a fact not a myth. There were many copies of the real bills posted in the internet proving this.

For a short period of time, Vodafone and Orange did tell customers that this was the reason. However, they soon realised this was incorrect when Ofcom ruled on the issue.

Don't know for how long this 'short period' lasted and what is happening ATM, but I don't believe that Ofcom rules on taxation issues.
The fact remains that the copies posted shown clearly that the cancellation fee was 1/6 smaller than the full price and was shown as 'VAT exempt'.

keith1950

Please don't start this urban myth going around again. There are people on here who will honestly believe it. For a short period of time, Vodafone and Orange did tell customers that this was the reason. However, they soon realised this was incorrect when Ofcom ruled on the issue.

Whilst I agree that my comment was a bit of a generalisation the fact is that it does happen with some networks.....Ofcom may have ruled that this shouldn't happen but you are generalising by saying that it is an urban myth that doesn't happen.