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Re: Overcharging VAT

"Unfortunately, our billing systems do not differentiate between calls made

>within and outside the EU, and so VAT is charged on all calls by default." > >Is this legal? Do HMC&E regulations allow UK companies to knowingly >miscalculate output VAT, especially when the customer is not VAT registered >and can't reclaim it as input VAT?

This seems to be a known problem with mobile networks - I am not sure why HMC&E haven't come down hard on the companies concerned since they have had years to resolve this. Just think how many people have been overcharged. Fortunately when HMC&E do get this resolved they will almost certainly insist that the companies refund the monies to the customers, perhaps as far back as seven years.

To give them their dues, CPW are very efficient at calculating and issuing >the refunds, but that's not the point...

I agree.

Reply to
Hiram Hackenbacker
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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.

Reply to
Matt S

Tony Walton writes

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

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Reply to
Dave

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

Reply to
Grant Mason

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.

Reply to
Dave

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

Reply to
Michael J

"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...

Reply to
Tim

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?

Reply to
Chris Blunt

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

These handy little things are called EXAMPLES>

Reply to
Michael J

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