Re: Overcharging VAT

I suppose it would also be interesting to see whether this fact has ever been picked up by CPWs auditors. I'm guessing that the amount involved would not be material to the accounts but it does make you wonder what the Tax partner on the audit does!

Unfortunately I'm no longer in a position to easily find out.

Tony Walton writes

Different VAT rules apply to PAYG. They changed earlier this year - and top-up vouchers are treated differently electronic top-ups!

I noticed their latest return is late - maybe this is why :-)

Grant Mason writes

Correct, as the 'place of supply' is outside the EU not VAT is due.

No. Bring it to the attention of HMC&E; the threat of penalties may concentrate CPW's mind somewhat - and they might find it's not such a big problem after all.

Indeed.

Simple. Remove the VAT.

ie. if the call was $100 and you have a 10% VAT or GST or flat tax, the call charge is now $91.91

"Michael J" wrote

Yeh, then what? If you've paid $100 - what happens about the extra $9.09 you've paid, which you shouldn't have? Get an extra $9.09 call credit? Does this include VAT? If so, what happens when you use that in a foreign country again - get another $0.83 extra call credit? Where does it end?

Although quite why a foreign currency ($) has crept into uk newgroups I'm unsure! Also, VAT is 17.5% so the use of 10% is quite absurd...

Why would there be a need to refund it? Couldn't they just debit your pre-paid balance with a lower amount (the cost of the call without VAT) for calls made outside the EU?

Thus the word "ie. if you have a 10% VAT or GST or flat tax ..."

These handy little things are called EXAMPLES>