Companies Misleading on Vat Charges

Terrlock

Hi,

I'm just wondering does any else find this a little misleading.

On a lot of broadband providers websites they are displaying prices but don't indicate if the are ex vat or with vat included.

I guess this is something I should have watched out for, but I guess I just made the mistake of assuming the were including vat when the didn't say otherwise.

Just got a surprise when I got my first bill.

I didn't realize this was common practice among them.

I really think this should be indicated on the prices though.

JohnC.

Is this residential or business? Any I've looked at tend to have residential including VAT and business excluding VAT. Which is pretty standard for things other than broadband too.

jor el

All consumer prices must include VAT, so they either priced wrongly, or you bought a business product.

What's the provider, and are you sure you didn't buy one of their business products instead of a residential one?

watty

Terrlock wrote: »

Hi,

I'm just wondering does any else find this a little misleading.

On a lot of broadband providers websites they are displaying prices but don't indicate if the are ex vat or with vat included.

Link to website of product you bought?

Link to other websites with consumer products without VAT?

(You could easily be correct, the ASAI, Comreg and others are not proactive, they mostly act just on complaints)

jor el is 100% correct.

Sponge Bob

Watty is totally correct, if sold as a business product you quote ex vat and if sold as a res/consumer product you quote inc vat.

Cabaal

Your saying alot of providers websites, care to give some examples?

Terrlock

I purchased Magnet Force 10 as here advertised.

https://www.magnet.ie/index.php/signup/step1.html

it's says €54.99 but doesn't state if that is including Vat or not.

When I got the bill I was charged Vat on top of the €54.99

watty

Magnet Force 10 is Magnet Entertainment's high speed home broadband service and Ireland's fastest no sharing residential broadband.

Definately a Consumer not a Business package.

It should state if VAT included or not, if not stating, it should include VAT

jor el

Are you sure it is VAT that you are seeing as the extra charge? The VAT portion of the bill is normally separated on a bill, but that doesn't mean you're paying more than was advertised.

First bills normally catch people out, as they are normally higher than you'd expect. This is because not only do you pay for whatever usage since you signed up to the bill date, but also the month (or months) going forward to the next billing date. This often ends up with your 1st bill being 50-100% higher than you thought it would be, because you're paying for past and future use.

The 2nd bill will only bill for the coming bill period, and will be the expected amount.

Just re-check your bill first and confirm what the charges are, and for what period. After that, you should contact Magnet customer service and find out why they over billed you.

Magnet's terms and conditions state

4.1 Our published list of Charges is set out in the Price Lists. You must pay the Charges for which we bill you together with any VAT and any other taxes (at the applicable rates from time to time) which apply in relation to any Charges. Where VAT has to be paid we have included it in the Charges at the current rate. Except in the case of manifest error the Charges will be based on our information about your use of the Services.

https://www.magnet.ie/index.php/Support/terms-a-conditions.html
So VAT should be included in the quoted rate.

Magnet: Rory

Terrlock wrote: »

I purchased Magnet Force 10 as here advertised.

https://www.magnet.ie/index.php/signup/step1.html

it's says €54.99 but doesn't state if that is including Vat or not.

When I got the bill I was charged Vat on top of the €54.99

The €54.99 includes VAT. Can I help you at all?

Karmafaerie

I'm guessing it's a pro-rate on the first bill for more than one months service.

Magnet: Rory

Karmafaerie wrote: »

I'm guessing it's a pro-rate on the first bill for more than one months service.

Correct.

Cabaal

Terrlock wrote: »

I didn't realize this was common practice among them.
.

So in short we've come to the conclusion that its not a practice amoung residential providers.

hello932

Cabaal wrote: »

So in short we've come to the conclusion that its not a practice amoung residential providers.

I beg to differ.

I have eircom phone and broadband residential and im being charged vat at 21% on top of my subtotal. Whats going on? Im on the eircom next generation broadband advanced and eircom talktime talker package for 66.71 per month-no mention of added vat in contract?

Sorry for the repost but no one seems to be replying so i thought id put myself in this thread as well.

Mountjoy Mugger

I had a look over at the eircom page and confirm that no mention of VAT is made on this product (residential product). Certainly seems a bit cheeky.

jor el

hello932 wrote: »

Sorry for the repost but no one seems to be replying so i thought id put myself in this thread as well.

Don't do that again.

Mountjoy Mugger wrote: »

I had a look over at the eircom page and confirm that no mention of VAT is made on this product (residential product). Certainly seems a bit cheeky.

VAT has to be included (by law) in all consumer prices. They don't mention it because it's unavoidable, and included in the price you see.

hello932

jor el wrote: »

Don't do that again.



VAT has to be included (by law) in all consumer prices. They don't mention it because it's unavoidable, and included in the price you see.

According to the sale of goods and supply of services act 1980 all goods have to be 'as described' and 'the price must be clearly displayed'

see the relevant booklet at http://www.consumerconnect.ie/eng/Hot_Topics/Our-booklets/

jor el

This thread has gone off topic enough, and you were warned once already about this.