Query Vat on bill with credit

[Vesper73]

My latest bill has 2 credits one for airtime rewards of £10 and the other of £12 from o2 for a complaint I made. 

Im confused though as I have still paid the same amount of v.a.t. I would on my normal bill/monthly charge. So basically the v.a.t. has been added and charged before the credits is this correct ? 

[MI5]

@Vesper73 

VAT is the same for your bill no matter who pays it.

The fact that your overall bill was less cost to yourself makes no difference.

[Vesper73]

So basically any credit is subject to the 20% vat.

I was with EE previously and never remember when I claimed a £10 airtime rewards credit only getting £8 off my bill (which is the £10 minus 20% vat) ?

[jonsie · Accepted solution]

Vat is charged on your normal bill and then the credits added

You don't pay vat on a credit

So not really understanding your query

[gmarkj]

The credits are added to your account AFTER the bill has been worked out, not before @Vesper73 

So if your tariff is £10, then VAT is added so the subtotal is £11.20.

Next any credits or adjustments are added - so the £22 in your case.

Finally the total is worked out - your tariff including VAT, less any adjustments leaving the amount to pay (or the credit on the account).

The only time you VAT would change is if there was a discount on your tariff charge, such as an o2 Open discount.

[MI5]

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@Vesper73 wrote:

So basically any credit is subject to the 20% vat.

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Your entire bill is subject to 20% vat

Credits then come off the total bill including vat

[Vesper73]

Maybe it's just the whole doing the bill without vat which is confusing especially if you have lots of things added or credit it makes it even more confusing. I have never understood why these bills are all done without vat then added on you do not get that in a shop for example. And it's not like if your a business some can claim back vat on certain things if your a personal customer you can't so makes no sense? 

Just show you your bill then the amount of vat paid simple ? 

[MI5]

@Vesper73 

I understand that's a change coming when you are moved onto the new billing system.