do all contract phones add vat?

beverley1296

I signed up for 18 month contract with 02 and it finishes in March HOORAY, I liked having the phone as my nephew and niece used it to contact all their school mates, I only used it to phone expensive competition lines, lowest unique bids, which let me add I have won several and have made the phone work for me, but my moan is when I spend £200 on calls ie 100 x £2 calls had I have had pay as you go I would have paid £200, with the 02 contract I paid approx £280 after vat etc, do all contract phones do this or is it just 02?

So needless to say I shall not be renewing my contract with 02.

GunJack

ALL contract phones have VAT. PAYG also has VAT as part of the call charges. If you're calling any of the premium rate numbers, you'll have been charged at anything up to £1.50 a minute, which is not included in your contract inclusive minutes, i.e. you'll have been paying for your contracted time PLUS ALL these premium rate calls.

dbs

All payg phones contain vat as part of the charges.

Monthly contract phones add vat on to the monthly rate 17.5%

£30 per month = £360 per year = £83 vat.

Even if you get a good cashback deal you still have to pay the full vat.

jools88

Hmm - are you sure about this? I haven't double checked yet but I am sure that with 02 if you are on say a £15 per month contract then your monthly bill is just that, £15 per month - the VAT is included.

mcmanlyn

The monthly charge includes VAT for all networks i think, you will just pay it on extra charges. If i don't go over my minutes i only pay £35 for my line rental.

ellieuk

dbs wrote: »

All payg phones contain vat as part of the charges.

Monthly contract phones add vat on to the monthly rate 17.5%

£30 per month = £360 per year = £83 vat.

Even if you get a good cashback deal you still have to pay the full vat.

This is incorrect.

The line rental stated for a monthly contract is inclusive of VAT. For example, Orange Dolphin 35 is £35 per month including VAT. 3 Mix&Match 300 is £15 per month including VAT.

Call charges are also inclusive of VAT so if your network says calls outside of your allowance cost 10p per minute then it's 10p per minute inclusive of VAT.

The only exception to this might be if you have a business contract, where the line rental might have been quoted ex-VAT. For example, line rental on promotional material might be quoted as £42.55 per month then with VAT added this comes to £50 per month. Business users who are VAT registered can reclaim the VAT element and so the cost to the business is £42.55.

dbs

The contracts in the past I have had charged vat as extra this is why I changed to payg as I am a low user.

Can anyone confirm that all contracts are inclusive of vat or does it depend on the provider,network,tariff etc because if so I might change back to a contract.

ellieuk

dbs, which network and tariff/contract were you on when charged VAT? Do you still have a copy of bill showing your tariff and actual line rental cost?

All normal contracts include the VAT in any cost advertised. If a Nokia N95 is £49.95 for the phone and £30 per month line rental then that is what you'll pay, plus any charges for minutes, texts and services outside your inclusive allowance.

dbs

No all my old bills have gone last company I used went bust forward cellular had one contract from dialaphone but that was a few years ago.

Sorry but I thought vat was added to the bills.

Alec_Eiffel_2

All consumer tariffs charge VAT regardless of the network or tariff. As other posters have said, the amount you are CHARGED includes the vat. For example, I am on o2 35, this costs me £35 per month incl-vat. It is shown on the bill as £29 and something pence excl-vat, and vat is then applied to this, making it £35. Calls or texts above my inclusive package appear on my online in-month bill as ex-vat, to which vat is then applied on the billing date. It's the same on all networks for consumer tariffs.

Alec_Eiffel_2

As an aside, it's like buying a cd in a shop. You see the price on the sticker, you pay the price on the sticker. This price includes the vat. It doesn't specify that vat is added, but it is. You can't opt out of paying the vat and so vat exclusive prices are not given as they are irrelevant to the purchase in the shop.