hidden vat cost

[Anonymous]

I’d like to ask about the hidden vat cost on my bill please.

After upgrading, I was led to believe the internet use and tariff would total £16.00 p/m. I’m on my second bill now, and each has been over £18.00 due to “vat”. This wasn’t the case on my last contract. Why wasn’t this made clear during the upgrade process?

Whilst it’s not a lot of money, the way O2 have gone about it is pretty dishonest!

[MI5]

Is it a business contract?

[adamtemp64]

if you are on a £16 month contract ex vat it would be £19.20 inc vat

Are other charges shown?

[Anonymous]

No, it’s not a business contract.

There’s an additional 54 pence for text messages (not sure what this is for as I have unlimited texts?), but other than that it’s £15.48 before the £3.10 vat.

This isn’t how it’s explained in the tariff section, and I don’t remember reading anything about a before vat price as the £16 p/m was more than I had planned on paying anyway. I guess it must have been in the small print somewhere.

I had pre

[Anonymous]

*I had presumed the first vat was a one-off for the hand set, but clearly that’s not the case.

[adamtemp64]

all consumer tariffs on the website are inc vat so £16 is £13.34 ex vat

can you link to your tariff on the website as I cannot find any at £16

[Anonymous]

The tariff is: O2 50 24 month at £10.50 pm

I then pay £6.00 for: The All Rounder data - 500MB

The bill beaks down as follows:

My bill

Top of Form

My tariffs	8.81
My monthly extras	6.13
What I've used
Calls	0.00
Messages	0.54
Mobile internet browsing and downloads	0.00

Bottom of Form

Total before VAT	15.48
VAT	3.10

Many thanks for your time and help – it’s greatly appreciated as I really have no idea about this vat addition.

[perksie]

It adds up correctly, no way of knowing what the extras were for, unless you show those too.

Your total bill is £16.50 including Vat plus the extras, which could be carried over from the last bill or previous contract or adjustments for a part month due to the changeover.

Unless you incur any costs such as MMS messages your next bill should be £16.50 inclusive.

[Liquid]

Simple calculation to find out how much an item is with added VAT is to multiple the cost by 1.2 (20%+original vat free amount)

So 8.81 x1.2 = 10.572

There's the total cost of your contract minus any extras eg bolt ons/mms/calls.

[Anonymous]

Sorry, I don't understand. The only extra I should have is the £6.00 for the internet - this, added to the £10.50 tariff should be the £16.50 I agreed to pay.

I don't understand why I was never told about the additional vat?!