VAT on ee broadband and phone bills

Mental_max

I have been claiming VAT back off our broadband bills for years (the broadband is used partly for my husband's business and partly for home use so we apportion the bill). I recently switched to EE and they won't give me a VAT invoice because I have a residential account. I checked with HMRC and they say that businesses charging VAT have to provide a VAT invoice to all business to business accounts and to any retail consumer accounts where the consumer requests a VAT invoice. I have told EE this but they say that their accounting software does not allow them to issue VAT invoices on residential bills. on their forum it looks like you can't have a business account (when they will provide VAT invoices) without a business bank account which my husband doesn't have (HMRC aware). This all seems pretty poor. And illegal. It's never been a problem before. I have a deadlock letter from EE and can go to the Ombudsman in theory. Does anyone have any ideas? I have only just got my first invoice for a 2 year contract with EE so moving isn't an option.

Isthisforreal99

Did you tell EE you woukd be using residential BB for business purposes? Woukd have thought most T&C's would preclude business use.

Ayr_Rage

@Isthisforreal99 you beat me to it by a minute.

@Mental_max before poking the hornet's nest, as above, do check you are actually permitted to use residential broadband for business.

Woodstok2000

Are you VAT registered? I think the HMRC guidance only forces businesses to issue a VAT invoice if the customer is VAT registered.

eskbanker

on their forum it looks like you can't have a business account (when they will provide VAT invoices) without a business bank account which my husband doesn't have (HMRC aware)

Not convinced that HMRC are particularly interested in whether a business has its own bank account but even if they are, they're not a relevant authority on the matter - using a personal account for a business will generally be a breach of the bank's Ts & Cs rather than being unlawful, etc…

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6688272/vat-on-ee-broadband-and-phone-bills

All VAT registered businesses must provide VAT invoices to their VAT registered customers on demand. The problem is the entity that is their customer is not VAT registered and so has no right to demand a VAT invoice.


VAT Notice 700/21 (Record keeping)

• Para 3.1: If you’re VAT-registered, you must issue a VAT invoice whenever you supply standard or reduced rate goods or services to another VAT-registered person, normally within 30 days.
• Para 2.2 lists the VAT-specific records as including a VAT invoice for supplies to other VAT-registered businesses.

Whilst many will issue VAT invoices to anyone they arent compelled to do so.

Grumpy_chap

I checked with HMRC and they say that businesses charging VAT have to provide a VAT invoice to all business to business accounts and to any retail consumer accounts where the consumer requests a VAT invoice.

That has been incorrectly communicated / noted.

As MRNT, a VAT invoice is only required to be provided to a VAT-registered entity on request.

TheNorthStar

Plusnet are the same, no VAT invoices for residential customers. They used to, but they stopped doing it years ago.

Mental_max

thanks MyRealNameToo and Ayr_Rage in particular.

I looked at the VAT notice you quoted. 4.4 says

4.4 VAT invoices issued by retailers

There’s no requirement to issue a VAT invoice for retail supplies to unregistered businesses. As a retailer, you may assume that no VAT invoice is required unless your customer asks for one. If you’re asked for an invoice then you have the following options.

If the charge you make for the individual supply is:

• £250 or less (including VAT), then you can issue an invoice showing your name, address and VAT registration number, the time of supply (tax point), a description which identifies the goods or services supplied, and for each VAT rate applicable, the total amount payable, including VAT shown in sterling and the VAT rate charged — exempt supplies must not be included in this type of VAT invoice
• more than £250 and you’re asked for a VAT invoice, then you must issue either a full VAT invoice or modified VAT invoice, showing VAT inclusive rather than VAT exclusive values.

But perhaps the notice means that the retailer can assume the customer isn't a business and if they ask then the business has to provide the VAT invoice because the customer asking is a business trying to reclaim VAT? is that what you think or that there is no requirement if the £250 or less you don't have to. The main HMRC notices 16? say that if you supply a VAT registered person then you have to give them a VAT invoice. And the account holder is VAT registered.

We didn't think it was necessary to tell EE anything about the business because we were just switching from BT who had been giving us VAT invoices for years. They didn't ask me either. And finally EE require you to have a business bank account to get a business account with EE - which is an issue as we don't have one so don't qualify for a business account - which I'm sure will be more expensive than the residential account we have just signed up to. If I could get out of it I would! I assume that EE are saving money by simplfying their system and not issuing VAT invoices.

Any help would be much appreciated! And I agree Ayr_Rage that maybe not sticking my head into the lion's mouth is the best bet. We're only losing 60% of the VAT we would have reclaimed, so about £50 a year.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82183546#Comment_82183546

So basically you didn't read the T&C's of what you signed up for, i.e. residential broadband that does not allow business use. You are supposed to be a business and carry out due diligence and didn't.

For the sake of £50 I'd just keep my head down.

eskbanker

EE require you to have a business bank account to get a business account with EE - which is an issue as we don't have one…

Why not?