O2 adding VAT to airtime bill.

sdd56

I recently upgraded my 5 year old Samsung to a newer model, still with O2.

The new contract states "Airtime plan: Monthly payments of £18".  It's not a business contract.

I've just received my first bill covering 13th Dec - 13th Jan. (The new phone was activated on 21st Dec).

The airtime bill is charged at £18.03, but they have then added 20% VAT on top of this. There is no mention of VAT on the contract summary.

On the webpage when I ordered the phone, it was listed at £31.50 per month (£18 airtime + £13.50 device plan). Again, no VAT was mentioned.

Have the rules changed about VAT on mobile plans?

Thanks in anticipation.

serpico100

You will only be charged £18 for the airtime from next month. That is inclusive of VAT. Legally they have to show the vat portion on the bill. The £18.03 plus vat that you mentioned is NOT airtime plus vat. As this is your first bill, It is £18 ( a month in advance) plus a pro rata amount until your billing cycle (both excluding vat) then the vat is added on to that.

I hope that makes sense. From the o2 website:

If you’ve recently joined us or upgraded, or changed your billing date or tariff, you may find that your bill is higher than you expected. This is because the airtime charges are pro rata. On your first bill after you join us, for example, we’ll charge you for one full month’s airtime, as well as any airtime used in the days before your billing cycle started.

sdd56

Thanks Serpico, that makes perfect sense.