Being charged VAT on contract

[Anonymous]

Hi I'm a little concerned. I'm being charged £5 VAT on top of my contract. This is my first contract ever and I wasn't aware of this extra cost as it wasn't stated anywhere. I signed up for £28 a month but on my bill it states this: £25.01 for contract then £5 VAT. Someone please help I'm totally confussed 😞

[Anonymous]

Hi.

Vat has always been charged on O2 contracts.

Look in o2's T&C and it will explain there for you.

[MI5]

VAT is included on all consumer tariffs but itemised separately on business contracts.
Either way, it has to be paid... Mr Osborne insists on it 😞

[Anonymous]

A recent thread.

http://community.o2.co.uk/t5/Discussions-Feedback/ridiculas-vat/m-p/468152/highlight/true#M33780

[Anonymous]

But why state that it is a £28 a month contract on the website? A bit cheeky really

[adamtemp64]

The £28 is inc vat so £23.34  ex vat

Your first bill is a full month plus a few days and is always higher than normal bill

http://www.o2.co.uk/assets/O2HybridNav/Static-files/BillRedesign/BillRedesignHtmlDemo/PB_consumer_02...

[Anonymous]

I do hope this is the case, thank you for your help

[Anonymous]

Yes Adam is right it will work out like that

[jonsie]

All explained here :

http://www.o2.co.uk/assets/O2HybridNav/Static-files/BillRedesign/BillRedesignHtmlDemo/PB_consumer_02...

http://service.o2.co.uk/IQ/SRVS/CGI-BIN/WEBCGI.EXE?New,Kb=Companion,question=ref%28User%29:str%28Mob...

[Anonymous]

On 28 Dec 2016 I signed a 24 month, pay monthly, contract for an iPhone6, 3gig data.

The price stated on the website is £31 per month.

The price stated on the signed contract is also £31 per month.

I refer to current legislation - -

*The Price Marking Order 2004*, *Citation 1 {2} in this order*.

Link = http://www.legislation.gov.uk/uksi/2004/102/pdfs/uksi_20040102_en.pdf

I quote - -

"selling price means the final price for a unit of a product …..including VAT and all other taxes"

"unit price means the final price including VAT and all other taxes".

That is to say that government legislation / law clearly states that the shown and advertised price of a product, at the point of purchase of that product, must include VAT.

Additionally, from the *terms and conditions* of my O2 contract, as with any of their other contracts - -

I quote - -

3, Price and Payment.

3.1. The price of the goods or services {if any} shall be the price of which we inform you prior to accepting your order. Prices include VAT at current rates unless stated otherwise.

At no point, prior to, or during, the signing of the contract, was I informed 'otherwise', either verbally or in writing.

I note from my latest bill, dated 12 Jan 2016, that I am being charged VAT !

The bill actually states - -

Tariff charges = £29.13   {which I expected to be £31]

Things You've bought = £3.32       {I bought nothing - apps have been charged directly to my bank}

VAT = £6.49

Total Bill = £38.94.

This being £7.94 more than I expected, and this x 24 would = £190.56 over the 24 month period.

Also, there is no apparent correlation between the original Tariff of £31 and the bill tariff of £29.13, and there is no explanation as to why this anomaly should exist.

It would appear that at the point of sale I was misled and misinformed and/or the company is committing an offence against government legislation.

I intend taking this issue further, but before doing so, any coments or advice would be much appreciated.