VAT Overcharging

Ruu_Old

From the Evening Herald 31/08

"Up to 100,000 consumers connected to telephone or broadband services this year could have been overcharged for VAT and be entitled to a rebate.
Eircom and Esat are still charging 21 per cent VAT for which the Supreme Court has ruled a lower rate should apply.

That judgement, which in December 2003 found cable firm NTL should levy 13.5 per cent VAT because it is a service rather than a product, was expected to lead to a fall in VAT rates levied by telecom companies."

Why are we still being charged 21 per cent by Eircom?Can i get on to Comreg about this?

De Rebel

Thats almost a word perfect transcription of the article which appeared in the Irish Times this morning. The IT article also carried the following:

Eircom said last night it was still in discussions with the Revenue Commissioners about the VAT rate that it charges for connections. It said it was unclear if the NTL VAT ruling automatically applied to it.

However, Mr David McRedmond, Eircom's commercial director, said Eircom would consider paying a refund to customers for connections if the Revenue Commissioners gave Eircom a rebate for the period since the court ruling.

Copyright Irish Times

In fairness, there is no benefit to eircom in charging the higher rate, they simply pass the money on to Revenue. But if the charge the lower rate and do so incorrectly they are liable for the diference. It is much more likely that Revenue are taking their time about deciding this, they are the ones who will loose out.

Ruu_Old

that makes sense, i thought Eircom might be stalling over it