Paying VAT on account top-ups

unholyangel

shaun_from_Africa said:

I have a mail forwarding service (which includes a virtual address) set up in another EU country  and in effect, this is no different to your virtual phone number contract.
I am paying for the service to be provided for which I pay a monthly fee (and this is the same as your payable phone service) and I also pay a fee for every letter that they receive and forward to me (which is the equivalent of you paying for your calls).
I have to pay VAT for both the monthly charge because this is a VAT rated service and also pay VAT on whatever I am billed for the forwarding of the mail.

You can't really compare the service you are getting and a PAYG phone service as they are quite different.
A PAYG phone number simply means that the phone company give you a number and once this has been done, there are no further costs incurred by them irrespective of whether or not you use the number provided.
The Bulgarian company are providing you with the ability to use your virtual number to make and receive calls should you wish to do so and this service needs paying for and that payment attracts VAT.

The calls thing was my fault! OP has since clarified it's not two seperate charges with one for service being available and another for use of it. 

hate-banks

unholyangel said:

shaun_from_Africa said:

I have a mail forwarding service (which includes a virtual address) set up in another EU country  and in effect, this is no different to your virtual phone number contract.
I am paying for the service to be provided for which I pay a monthly fee (and this is the same as your payable phone service) and I also pay a fee for every letter that they receive and forward to me (which is the equivalent of you paying for your calls).
I have to pay VAT for both the monthly charge because this is a VAT rated service and also pay VAT on whatever I am billed for the forwarding of the mail.

You can't really compare the service you are getting and a PAYG phone service as they are quite different.
A PAYG phone number simply means that the phone company give you a number and once this has been done, there are no further costs incurred by them irrespective of whether or not you use the number provided.
The Bulgarian company are providing you with the ability to use your virtual number to make and receive calls should you wish to do so and this service needs paying for and that payment attracts VAT.

The calls thing was my fault! OP has since clarified it's not two seperate charges with one for service being available and another for use of it. 

yes, I never spoke about calls or anything I'm buying from them except for the line rental so not sure why everyone is saying that it's normal I'm paying for VAT for both line rental and calls, there are no calls, no texts, no nothing. 
My point is simple: I shouldn't be paying VAT for just topping up an account with money! Topping up an account is not a purchase and the company is NOT paying VAT on that, they are paying VAT when I purchase a service, here, a line rental. 
And my comparison with PAYG is correct. If I top up my account for £10 at vodafone PAYG, I pay £10 and I get £10 on my account! THEN, when Vodafone are charging me for calls or whatever, they include VAT, but I do not pay VAT on the top ups. 

peter_the_piper

By paying into an account you are paying for the service ie vatable. Its highly possible that Bulgaria has a different VAT set of rules which could cover this. It may not be like this in UK but as a Bulgarian company you would likely be bound by their rules.

shaun_from_Africa

hate-banks said:

yes, I never spoke about calls or anything I'm buying from them except for the line rental so not sure why everyone is saying that it's normal I'm paying for VAT for both line rental and calls, there are no calls, no texts, no nothing. 

It's probably a silly question but as this is a money saving website, I have to ask it.
Why are you paying for a line rental service if you are not making or receiving calls or texts?

hate-banks

shaun_from_Africa said:

hate-banks said:

yes, I never spoke about calls or anything I'm buying from them except for the line rental so not sure why everyone is saying that it's normal I'm paying for VAT for both line rental and calls, there are no calls, no texts, no nothing. 

It's probably a silly question but as this is a money saving website, I have to ask it.
Why are you paying for a line rental service if you are not making or receiving calls or texts?

I'm receiving calls/texts, which is free.