Mobile phone VAT Charge high after deduction.

[Ransoman]

Hi All,

Not sure where to post this but I thought I would try my luck here.

I recently had a £100 reduction in my phone bill after a successful complaint to O2 after communicating their call charges to me while traveling for work. The only country I didn't get a "Welcome to.. these are your call rates" was a country that I was billed £2.00 per minute for every call, despite being in the Euro Zone (note, currency zone, not the EU, Kosovo to be precise)

I have just recieved my bill and have been charged £41 VAT on a £110 bill. I queried this and was told that they are required by law to charge VAT on the full amount of the bill before deductions.

The reduction in my bill is shown as an adjustment rather than a discount.

Is this correct or are they having me on?

Thanks,

[TooMany2cvs]

Ransoman said:

I recently had a £100 reduction in my phone bill after a successful complaint to O2 after communicating their call charges to me while traveling for work. The only country I didn't get a "Welcome to.. these are your call rates" was a country that I was billed £2.00 per minute for every call, despite being in the Euro Zone (note, currency zone, not the EU, Kosovo to be precise)

To be strictly accurate, Kosovo isn't in the Euro zone. They just happen to use the Euro as their currency. The pan-European roaming charge agreements are tied to EU/EEA membership, nothing else.
(What's it like, btw? It's the only former-Yugo country I've not been to.)

Ransoman said:

I have just recieved my bill and have been charged £41 VAT on a £110 bill. I queried this and was told that they are required by law to charge VAT on the full amount of the bill before deductions.

The reduction in my bill is shown as an adjustment rather than a discount.

So the bill was £210 + VAT, £252 inc VAT, and they deducted £100 from the final amount, leaving you to pay £152? The £100 would have been a VAT inclusive deduction, £83.33 + vat.

[Ransoman]

TooMany2cvs said:

So the bill was £210 + VAT, £252 inc VAT, and they deducted £100 from the final amount, leaving you to pay £152? The £100 would have been a VAT inclusive deduction, £83.33 + vat.

That's right, the total bill is £152, VAT charged on the full £210.

Kosovo is ok, feels very stable and well developed but a bit delapidated in places. Good "fix it" culture. With the exception of the airport Taxi driver the people are nice but very limited english.