Welcome to the O2 Community

Has your question already been answered? See the community FAQ's

Pay Monthly

Reply
Anonymous
Posts: 0
Accepted Solution

Early termination fee - VAT or no VAT?

Hi people,

 

I've had different answers on chat, over the phone and in store. If I end my O2 contract early, will I be charged VAT on the remaining months? I am not disputing anything, I am simply checking what the case is with O2, as I'm getting conflicting information.

 

I did it with another network a number of years ago and VAT was excluded, but I know networks will operate differently.

 

Anyone know for sure?

 

Many thanks

Posts: 109,092
Topics: 561
Solutions: 14,438
Registered: ‎04-04-2012

Re: Early termination fee - VAT or no VAT?

If it's a standard contract it's your basic monthly rate multiplied by the number of months, so yes, vat is included in the costs.
I have no affiliation whatsoever with O2 or any subsidiary companies. Comments posted are entirely of my own opinion. This is not Customer Service so we are unable to help with account specific issues.

Currently using:
OnePlus 6 (O2 & Sfr), Z3 Tablet (Three UK), iPhone 8+ (EE)
Posts: 93,109
Topics: 751
Registered: ‎14-01-2013

Re: Early termination fee - VAT or no VAT?

@AnonymousIf you are on a personal contract you will be charged the amount of months outstanding which are vat inclusive I believe. Business contracts are different https://community.o2.co.uk/t5/How-to-Guides/Cancelling-Your-Contract-A-Guide/ba-p/566774#M56526

*The Game Is On*

Most-Helpful-MemberFriendliest-MemberMost-Useful-GuideBest-Feedbacker
Posts: 2,080
Topics: 48
Kudos: 591
Solutions: 48
Registered: ‎04-05-2008

Re: Early termination fee - VAT or no VAT?

Oh hang on.  If I remember you can’t be charged VAT on a product you haven’t used.

 

i believe no network can charge you, I may be wrong, but I would check with O2 retention team for final price. 

Need Help, Just ask. We are one big Family here in the o2 Forum.
Use iPhone XS Max dual sim, SE, Honor 10, IPad Pro 11, Apple Watch 4 LTE, 100+ Mpbs Barrier and a Record Player.


Posts: 109,092
Topics: 561
Solutions: 14,438
Registered: ‎04-04-2012

Re: Early termination fee - VAT or no VAT?

It's a discussion we've had previously on here.
I have no affiliation whatsoever with O2 or any subsidiary companies. Comments posted are entirely of my own opinion. This is not Customer Service so we are unable to help with account specific issues.

Currently using:
OnePlus 6 (O2 & Sfr), Z3 Tablet (Three UK), iPhone 8+ (EE)
Posts: 2,080
Topics: 48
Kudos: 591
Solutions: 48
Registered: ‎04-05-2008

Re: Early termination fee - VAT or no VAT?

This is a 2016 Article.

 

https://kenstechtips.com/index.php/cancelling-your-mobile-phone-contract-early-termination-fees-alte...

 

It it shows all the network termination fees and every network is different. 

 

From reading it. O2 are one of the networks that charge the full amount. 

 

Good to to read for other networks.  Also bare in mind it’s fro. 2016 so you agreement may be a little different. 

Need Help, Just ask. We are one big Family here in the o2 Forum.
Use iPhone XS Max dual sim, SE, Honor 10, IPad Pro 11, Apple Watch 4 LTE, 100+ Mpbs Barrier and a Record Player.


Community Manager
Posts: 7,309
Registered: ‎18-02-2016

Re: Early termination fee - VAT or no VAT?

Hey @Anonymous I'll double check what the VAT situation is when cancelling early! 

COVID-19 support - Help and support from O2 during the lockdown
Access for You: Registration - Find out how to register for our Access for You service.
Just joined the community or thinking of registering? Check out this handy starter guide!
Have a query about your account? See if the My O2 how-to guide will help


If you'd like to take part, why not register? Smiley Happy
signature

Anonymous
Posts: 0

Re: Early termination fee - VAT or no VAT?

Hi everyone,

 

Just updating this thread in case it helps other customers in future - I obtained my PAC and used it, my final bill has arrived and it does not include VAT on the remaining months.

 

Many thanks

Posts: 109,092
Topics: 561
Solutions: 14,438
Registered: ‎04-04-2012

Re: Early termination fee - VAT or no VAT?

I'm glad they've changed that then as we've always said it was wrong.
I have no affiliation whatsoever with O2 or any subsidiary companies. Comments posted are entirely of my own opinion. This is not Customer Service so we are unable to help with account specific issues.

Currently using:
OnePlus 6 (O2 & Sfr), Z3 Tablet (Three UK), iPhone 8+ (EE)
Posts: 81,352
Topics: 576
Solutions: 3,931
Registered: ‎04-01-2009

Re: Early termination fee - VAT or no VAT?

I don't know how they got away with it for so long. My understanding, having worked in and ownng a VAT registered business, my understanding is that you cannot charge VAT on a service not supplied. This point was strictly adhered to at one time, hence you would pay less for or more for cold or hot food. Retailers seem to have long since 'forgotten' this legal obligation.