Orange & VAT - Is this legal?

[cs174]

Hi all,

I just received this text from Orange:

"Hi from Orange. From 11 Feb, every £10 top-up gets you £1 towards a new phone with Orange Phone Fund. This replaces the VAT adjustment. See orange.co.uk/fund"

So, presumably they will be charging me 17.5% VAT instead of the current government rate of 15%. I've checked the web-site and there is no mention of the VAT. Is this legal?

If so, as a limited company, perhaps I should charge my customers 17.5% VAT in return for a future discount. It doesn't seem right to me.

cs174

 

[Kerioak]

Send a message back "are your phones so unreliable that I have to start saving for a replacement even though I have just purchased a new one" :nuts:

 

[cs174]

I like your thinking.

I tried that but I can't reply to their text (they've removed their number)

 

[seriousrikk]

This is just a way of putting their base prices up.
They will still charge you 15% VAT - they have to. However they will put their prices back up with this 'fund' being a cop out.

 

[fletch5]

in other words, they are charging you 15% tax, but upping there price to compensate for the discount

 

[RichardC27]

The VAT rate cut is not legally binding. Retailers don't have to pass it on to you, so yes it is legal. It was the government's way of getting small retailers on board, as changing prices for them would have cost a fortune.