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Anonymous
Posts: 0

VAT increase

Does anyone know how o2 are going to handle the VAT increase that will take effect shortly?
Is the ten pounds a month Simplicity tariff still going to cost ten pounds to new or upgrading customers, for example, with o2 swallowing the difference, or have they got other plans?
In other words, is it worth upgrading now or in the new year?
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Re: VAT increase

See this thread viewtopic.php?f=2&t=55292&hilit=Vat
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Re: VAT increase

I had a text message earlier this week reminding me.
Whether or not its worth upgrading now is irrelevant: its VAT so will be applied to your tariff come 1st Jan 2011. Now because its a psychological price point we may see interesting things happen. I doubt it though as it'll be slapped on to save time. A couple of months down the line it may get re-adjusted for marketing purposes.
Anonymous
Posts: 0

Re: VAT increase

Thanks, but the O2 explanation appears to only cover existing contracts.
I can understand that anyone currently on a ten pound sim only deal will have to pay another three pounds or so over the next year, but if O2 advertise this tariff as ten pounds per month after 4th January and make no other changes to the deal, then the customer who buys it then will be better off than one who buys it now.
I appreciate that this is a relatively moot point given the amount of money involved, but my question is still unanswered.
Anonymous
Posts: 0

Re: VAT increase

advertised prices will go up to match the rise in VAT
Anonymous
Posts: 0

Re: VAT increase

So wait does this mean your entitled to cancel your contract if the price goes up? When you take out your contract the price quoted is inclusive of VAT no? e.g. £35 a month. So if that goes up surely they're violating the contract you took out with them? Or is there something in the terms and conditions to get around VAT rises etc?
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Registered: ‎04-01-2009

Re: VAT increase

No, O2 are not changing your contract. The increase in duty is nothing to do with O2.
All info re: the VAT increase is here : http://tinyurl.com/2011tariffs
Anonymous
Posts: 0

Re: VAT increase

No that's not what I meant. I meant that when you take out a contract with O2 they say the contract is a set price which is inclusive of VAT. Mine for example is £35. They don't say its £29 something + VAT in the advertising of the tariff. So when VAT goes up my contract will be more than £35. What I'm saying is should O2 not be absorbing this price increase so the tariff is still the agreed upon £35 or is there something in the terms and conditions which gets them out of this? Something that reserves them the right to increase the total price due to VAT changes etc or something along those lines?
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Re: VAT increase

[ Edited ]
o2 say inc vat if vat changes that is not o2's fault.
8.4 You may end this Agreement by giving us written notice if:
(a) we break this Agreement in any material way and we do not correct the situation within 7
days of receipt of your written request;
(b) we go into liquidation or a Receiver is appointed over our assets; or
(c) you are a Consumer Customer and we increase charges by more than 10% for calls,
messages or data that form part of your inclusive allowance or your Line Rental Charges or
change this Agreement to your significant disadvantage in accordance with paragraph 9.2 of
the General Terms, provided you give us a minimum of 30 days’ written notice (and provided
you notify us within one month of our telling you about the changes). This does not apply
where:
(i) the increase or change relates solely to Additional Services in which case you may cancel,
or stop using, that Additional Service;
(ii) the increase does not exceed any relevant indices, including but not limited to the Retail
Price Index (“RPI”) or the Consumer Price Index (“CPI”) figure in any twelve month period; or
(iii) the increase or change is as a result of a requirement by a government or competent
regulatory body. For the avoidance of doubt this shall include any increase in VAT or the
imposition of a similar or new tax on the Service or us
.

Source http://www.o2.co.uk/assets2/pdf/AIRTIME ... _OCT10.pdf
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Re: VAT increase

Ha beat me to my usual hyperlink! Bear in mind the words "imposition of a similar or new tax". Don't be surprised at some point UKGov realises they can make a bit of tax over recycling of phones and add a Electronic Waste cost to the initial purchase price. Don't think they do now but be prepared.
To annoyhamster: given that the price you pay is a monthly cost, you would still need to pay the additional (as per the T&C's). If you on the other hand had paid in advance all of the cost over the period, then no more can be charged unless it is in respect of chargeable calls which would then attract VAT.
Its also a bit of a grey area as a contract is a credit agreement which doesn't attract VAT as such (not according to my car loan!) but it is in provision of a service which does.