VAT @ 21.5% applied to November Bill

danindublin

Not sure if this is right or not, but just receieved my phone bill for nov - calls and charges are all for the month of November yet the rate of VAT charged is 21.5%. Surely if the service was provided in November, how can they charge the new rate of VAT on it? (bill was issued in Dec)

D

LolaDub

I think it applies to the billing date regardless of when the product was used. So if you're being billed after the 21.5% has kicked in then thats what your bill is charged at afaik. Think its something you'd be better off asking the nca, they should know the score

Einstein

I'd be confident that you could dispute that tbh.
Any VAT that the company would be paying(service parts, equipment etc) would be at 21% until dec 1st.

tony1kenobi

Aren't phone bills paid in advance? Line rental in advance and calls in arrears?

Thoie

http://www.revenue.ie/en/tax/vat/leaflets/rate-change-budget2009.html#section2

Your line rental should be at 21.5%, but any VAT on calls made should be at 21%

Do all the sums yourself - you may find that they did the sums right, but just wrote 21.5% rather than changing the entire layout of the invoice.

Actually - don't bother. From the same page:
8.2 Telecommunications services billed before 1 December are taxable at 21% and telecommunications services billed on or after 1 December are taxable at 21.5%.

cgarvey

It's down to the tax date. So whether you prepay or post pay for a given service, if the invoice date is after 21st Dec, then VAT must be 21.5% on that invoice. VAT applies at the time of the sale (invoice date) rather than at the time of consumption.