Ethical Dilemma

1989bumble

Ethically the promoting of Lebara Sim Only Deals on the MSE website for me is a questionable practice

I have seen Mr Lewis criticising the government for not helping vulnerable members of society. Yet your the site is promoting various deals provided by a company that is evading VAT in the uk

I believe the government have tried unsuccessfully to challenge this

While I understand that many large companies are avoiding corporation tax by having overseas head quarters all are charging and paying VAT to the exchequer on products sold into the UK

I would be interested to hear the thoughts of others regarding the ethics of this situation

At the very least I believe that it should be made it very clear that this evasion tactic is probably the main reason that Lebara and others are significantly cheaper than their competitors 

Neil_Jones

On what basis exactly?

https://www.lebara.co.uk/en/terms-and-conditions.html - "All Pre-Pay prices are inclusive of VAT unless otherwise stated. No separate VAT invoices or receipts shall be issued by us."

If you are referring to the "no separate VAT invoices or receipts" thing, that's normal.  McDonalds food includes VAT but they don't give you a VAT receipt for that unless you ask for it., so the default is not to give it you.

Or are you referring to something else?

savergrant

Anything to do with this?

https://www.accountingweb.co.uk/tax/business-tax/hmrc-loses-lebara-phonecard-vat-case

PHK

People need to remember that MSE exists to make a profit. There's a reason why it continues to promote Lyca which has the worst customer service ever and Lebara which is a worrying company that also does things like sat your payment card has failed (when there's nothing wrong) so you like your deal. 

When you click on an affiliate Link then MSE makes money. 

flaneurs_lobster

PHK said:

People need to remember that MSE exists to make a profit. There's a reason why it continues to promote Lyca which has the worst customer service ever and Lebara which is a worrying company that also does things like sat your payment card has failed (when there's nothing wrong) so you like your deal. 

When you click on an affiliate Link then MSE makes money. 

Read your second sentence. It makes no sense.

savergrant

I think it should be 'say your payment', and 'lose your deal'. 

PHK

savergrant said:

I think it should be 'say your payment', and 'lose your deal'. 

Thank you, yes I blame autocorrect and stupidity on my part in not re-reading the post. 

1989bumble

Neil_Jones said:

On what basis exactly?

- "All Pre-Pay prices are inclusive of VAT unless otherwise stated. No separate VAT invoices or receipts shall be issued by us."

If you are referring to the "no separate VAT invoices or receipts" thing, that's normal.  McDonalds food includes VAT but they don't give you a VAT receipt for that unless you ask for it., so the default is not to give it you.

Or are you referring to something else?

I have indeed requested a vat invoice and been informed by Lebara that vat is not charged so cannot be shown on an invoice
As Savergrant indicated I assume that is as a result of the case brought by HMRC

Neil_Jones

1989bumble said:

Neil_Jones said:

On what basis exactly?

- "All Pre-Pay prices are inclusive of VAT unless otherwise stated. No separate VAT invoices or receipts shall be issued by us."

If you are referring to the "no separate VAT invoices or receipts" thing, that's normal.  McDonalds food includes VAT but they don't give you a VAT receipt for that unless you ask for it., so the default is not to give it you.

Or are you referring to something else?

I have indeed requested a vat invoice and been informed by Lebara that vat is not charged so cannot be shown on an invoice
As Savergrant indicated I assume that is as a result of the case brought by HMRC

First of all the HMRC case linked to above is 12 years old.

Secondly if you read the article properly the case was bought by the provider, not by HMRC and it was concerning sales in Europe.  Not the UK.

Thirdly as I've already alluded all prices for Lebara include VAT and the T&Cs say they do not provide VAT invoices.  Lebara is not intended as a business provider, they are clearly aimed at the domestic market and people who don't need VAT invoices.

If you want VAT invoices find somebody else.