So will all Sky subs increase by 23% ?

muffler

First up Im not sure if this is entirely the correct forum but as its to do with Sky/satellite it should be okay.

I just got the tail end of a bit of discussion on the local radio where it was claimed that due to changes regarding VAT introduced in yesterdays budget that Sky will have to pay 23% vat to the government and in turn the increase will most likely be passed on to Sky customers.

Anyone here anything about this?

h7nlrp2v0g5u48

muffler wrote: »

First up Im not sure if this is entirely the correct forum but as its to do with Sky/satellite it should be okay.

I just got the tail end of a bit of discussion on the local radio where it was claimed that due to changes regarding VAT introduced in yesterdays budget that Sky will have to pay 23% vat to the government and in turn the increase will most likely be passed on to Sky customers.

Anyone here anything about this?

That's right I heard that while watching the budget. I didn't hear anything about Sky passing the increase on to the customer.

Kensington

muffler wrote: »

First up Im not sure if this is entirely the correct forum but as its to do with Sky/satellite it should be okay.

I just got the tail end of a bit of discussion on the local radio where it was claimed that due to changes regarding VAT introduced in yesterdays budget that Sky will have to pay 23% vat to the government and in turn the increase will most likely be passed on to Sky customers.

Anyone here anything about this?

EU rules coming into effect from 2015 mean that you have to pay VAT locally in the country you are selling to, not the country you are selling from.

Sky do already pay VAT, just they pay UK VAT rate to the UK government, because your subscription is sold from the UK.

So yes our subs will probably increase, but only by the difference between UK VAT and ROI VAT (3% I think?)

ftakeith

Sky should make the Irish Original bundle and have the relevant HD channels as standard all for 28euros, as it would get more basic customers

Sky Customers that get Sky multiroom around their home are wasting money as multiroom should be freesat/saorview alongside sky in the main TV room

lertsnim

It's about time they payed VAT here.

muffler

ftakeith wrote: »

Sky should make the Irish Original bundle and have the relevant HD channels as standard all for 28euros, as it would get more basic customers

Sky Customers that get Sky multiroom around their home are wasting money as multiroom should be freesat/saorview alongside sky in the main TV room

Im confused as to how that has anything to do with the topic

MBSnr

Standard sub is €28.

Divide by 1.2 (UK VAT) to get pre VAT rate of €23.33

Multiply by 1.23 to get €28.70 Irish VAT rate

Difference is 70c.

Two things.
1. I'd have thought they'd have sent letters by now indicating they are increasing the price - maybe they still will within 30 days of 1st Jan.
2. I negotiated a new 12 month rate the other week with Sky and no increased payment was mentioned (oversight or indication that they are absorbing this diff in the short term?).

helimachoptor

price rises are once every 12 months..

On the positive side, Revenue are now getting a wedge of cash and if Sky harmonise the VAT rates, Revenue will get that bit more

AMKC

I pay 28euro,s to Sky and I think it is too much. If they increase it anymore I will just cancel it altogether.I have already been thinking about cancelling anyway. I don,t even use half off it anyway like the catch up the box sets, movies on demand and the sky store sections I don,t have and don,t use. I have no interest in having them I just want cheaper basic sky package thats all I want. Say a basic package for maybe 14 or at the most 20 euro,s would be great. Just like it used to be your sky hd box the basic channels and sky+ thats all I use and all I want no more.They should do that as a basic package. Some of us arn,t addicted to being online and needing online tv or that phone thing they do.

snaps

Haha, sky just announced their profits for first quarter......up 11%. Operating profit of over £315m

radioland

up to now as a previous poster mentioned , Sky paid tax where they are based in UK. From 2015, telecoms companies only must pay where service is delivered. Up to now Sky were correct.

MBSnr

AMKC wrote: »

I pay 28euro,s to Sky and I think it is too much. If they increase it anymore I will just cancel it altogether.I have already been thinking about cancelling anyway. I don,t even use half off it anyway like the catch up the box sets, movies on demand and the sky store sections I don,t have and don,t use. I have no interest in having them I just want cheaper basic sky package thats all I want. Say a basic package for maybe 14 or at the most 20 euro,s would be great. Just like it used to be your sky hd box the basic channels and sky+ thats all I use and all I want no more.They should do that as a basic package. Some of us arn,t addicted to being online and needing online tv or that phone thing they do.

I pay €20 for the €28 package. Phone, ask for a deal, persist and you might get something - else be prepared to go all the way through to cancelling. My wife rings for us. Somehow she's much better at being stubborn and not letting things go, ahem, putting forward our case for a cheaper deal...:p

Seriously though you need to hold on in there and make a fair point (which I can't do as I buckle....).

smodgley

i phoned sky last week to cancel , they offered me the basic package for 18 euro, i still cancelled thou fed up of them

The Cush

From the Irish Times - http://www.irishtimes.com/business/sectors/media-and-marketing/sky-to-take-hit-of-9m-to-absorb-cost-of-vat-switch-1.1966704

Sky’s pay-TV business in Ireland is set to take a hit of €9 million next year as its 700,000 customers pay VAT here for the first time instead of in Britain.

...

Sky reserves the right in its pay-TV contracts to increase subscription fees “if we are required to increase our prices by law (eg due to a change in VAT).”

It is understood, however, that the company plans to absorb the cost of the increased VAT charge.

The company typically reviews its prices every February, but it is understood there are no plans at present to change that policy.

On the basis that Sky’s annual Irish turnover amounts to €300 million, an increase of 3 percentage points in the VAT on its sales would amount to €9 million in a full year.

The company made no comment on the implications of the VAT change.

It is understood VAT paid by the customers of Sky Ireland, which has set up a new corporate entity in Dublin to handle the change, will constitute the bulk of anticipated payments.

Thread here from the time Sky started sending out letters to Irish subscribers about the change of company to Sky Ireland Limited (CRO No. 547787, Regd 08/08/2014).



From the Budget documents

VAT

2015 Place of Supply Changes

Cross-border EU telecommunications, broadcasting and electronically supplied services, from 1 January 2015, will be charged to VAT in the Member State of the consumer and not the supplier. As a net recipient of these services, it is estimated that Ireland will gain VAT revenues of €100m in 2015, rising to €150m in 2019.

+ €100m in 2015/16; and €125m in 2017/18
+ €150m from 2019 on

http://budget.gov.ie/Budgets/2015/Documents/2%20Summary%20of%202015%20Budget%20Measures%2014%20Oct%2000.09.pdf

Dulchie

http://www.irishtimes.com/business/sectors/media-and-marketing/sky-to-take-hit-of-9m-to-absorb-cost-of-vat-switch-1.1966704

lertsnim

I like how they say they are taking the hit for customers. The same customers they are fleecing every month. The cost of Sky here compared to the UK is ridiculous.

channelsurfer2

lertsnim wrote: »

I like how they say they are taking the hit for customers. The same customers they are fleecing every month. The cost of Sky here compared to the UK is ridiculous.

Yes I smiled at that. Its very generous of them....

ftakeith

I predict the original Irish sky bundle will increase to 30euros per month from September 2015

I predict sky will scrap the Irish Sky variety package in 2015
A new Irish sky family bundle will replace it or the Variety package in HD between 40euros per month or 45euros per month or even 50euros per month

NIMAN

Wouldn't put it past them.

snaps

They can't put it up because a few years ago they already increased subs because of the vat rate increase to 23%. It was sly then when they done it and now they have been caught out.
There are posters on here that remember the letter that was sent out.
I'm sure because of it a thread was started claiming that they were charging Irish vat and paying uk vat.

machiavellianme

snaps wrote: »

They can't put it up because a few years ago they already increased subs because of the vat rate increase to 23%. It was sly then when they done it and now they have been caught out.
There are posters on here that remember the letter that was sent out.
I'm sure because of it a thread was started claiming that they were charging Irish vat and paying uk vat.

Must see if I can dig out that letter. Someone must have it filed away?

cgarvey

snaps wrote: »

They can't put it up because a few years ago they already increased subs because of the vat rate increase to 23%.

You sure you're not mixing up with the letter about the UK VAT increase to 20%? I ask, because what you're alleging would be highly illegal.

Also, a month ago I received a letter from Sky to say from 1st Jan '15, my service provider will switch to Sky Ireland Ltd.,and also says the price will be unaffected as a result of this change.

monkeysnapper

We quit sky a year ago and bought Apple TV and got a netflix account, never looked back , we then mirror rte player and tv3 through I pad ,

Everybody in house grumbled, the kids now are delighted and the mrs says she finds it good, ...she won't admit I was right tho .

snaps

cgarvey wrote: »

You sure you're not mixing up with the letter about the UK VAT increase to 20%? I ask, because what you're alleging would be highly illegal.

Also, a month ago I received a letter from Sky to say from 1st Jan '15, my service provider will switch to Sky Ireland Ltd.,and also says the price will be unaffected as a result of this change.

You may be right.

Andy454

Hmmmm....

I would prefer that the VAT paid fund the platform regulator (Ofcom).

None of the Irish institutions will regulate Sky and most are scared stiff!

Why should the VAT be paid to Irish Exchequer when they've absolutely nothing to do with the Platform??

I already pay the TV licence for the Irish TV - We'd still only have black and white tv if it was up to the Irish government!!

I might actually subscribe from a UK address and pay the UK price...

muffler

Andy454 wrote: »

I would prefer that the VAT paid fund the platform regulator (Ofcom).

Where are you going with all this "ofcom" stuff? You're on an Irish discussion forum you know. This is the second post today that you have mentioned this with the other stating that you are going to complain to them.

You aint going to get any change there.

lertsnim

Andy454 wrote: »

I already pay the TV licence for the Irish TV - We'd still only have black and white tv if it was up to the Irish government!!

What are you on about?

Johnboy1951

The Cush wrote:

From the Budget documents
Quote:
VAT

2015 Place of Supply Changes

Cross-border EU telecommunications, broadcasting and electronically supplied services, from 1 January 2015, will be charged to VAT in the Member State of the consumer and not the supplier. As a net recipient of these services, it is estimated that Ireland will gain VAT revenues of €100m in 2015, rising to €150m in 2019.

+ €100m in 2015/16; and €125m in 2017/18
+ €150m from 2019 on

http://budget.gov.ie/Budgets/2015/Do...ct%2000.09.pdf

Sky should be paying about €70m of that figure it seems.

Johnboy1951

muffler wrote: »

Where are you going with all this "ofcom" stuff? You're on an Irish discussion forum you know. This is the second post today that you have mentioned this with the other stating that you are going to complain to them.

You aint going to get any change there.

I think you are referring to this post ....... and I guess ofcom might be the entity to deal with Sky at present, which is who his complaint is about apparently

http://www.boards.ie/vbulletin/showpost.php?p=93279845&postcount=77

Andy454

muffler wrote: »

Where are you going with all this "ofcom" stuff? You're on an Irish discussion forum you know. This is the second post today that you have mentioned this with the other stating that you are going to complain to them.

You aint going to get any change there.

Ofcom regulates sky, complaints regarding Sky have to be sent through them.

Comreg, BAI, NCA have stated that they have no powers with respect to Sky TV

I have had a complaint upheld by Comreg

muffler

Andy454 wrote: »

Comreg, BAI, NCA have stated that they have no powers with respect to Sky TV

I have had a complaint upheld by Comreg

Bit of a contradiction there, no?

Beer Assistant

Letter in the door today from sky informing me of a €2 hike in the new year

channelsurfer2

Yes confirmed on phone.36 euro pack going up to 38 euro. So much for absorbing the vat.

radioland

channelsurfer2 wrote: »

Yes confirmed on phone.36 euro pack going up to 38 euro. So much for absorbing the vat.

I'm not defending sky but the increase looks more like cost of living than VAT.

muffler

radioland wrote: »

I'm not defending sky but the increase looks more like cost of living than VAT.

A €2 rise on the basic pack costing €28 works out at more than 7% which is a hell of a lot more than any increase in the cost of living.

The Cush

muffler wrote: »

A €2 rise on the basic pack costing €28 works out at more than 7% which is a hell of a lot more than any increase in the cost of living.

The basic pack is going up by €1 according to my sister, she got the letter yesterday.

ftakeith

//www.sky.com/products/sky-tv/original-bundle/index-roi.html

I have the HD pack for free until 30/4/14
I never pay for the HD pack
HD means nothing for me
I have freesat/saorview and have HD for free

Expect Sky to justify the cost by telling us we now get UTV in glorious HD.

lertsnim

ftakeith wrote: »

//www.sky.com/products/sky-tv/original-bundle/index-roi.html

I have the HD pack for free until 30/4/14
I never pay for the HD pack
HD means nothing for me
I have freesat/saorview and have HD for free

You used to never pay for tv either but look at you now.

channelsurfer2

5.5% increase on the 36euro pack.

muffler

The Cush wrote: »

The basic pack is going up by €1 according to my sister, she got the letter yesterday.

Aye, just seen that there now over on the Sky talk to forum

ftakeith

lertsnim wrote: »

You used to never pay for tv either but look at you now.

but its the basic sky package

Zardoz

channelsurfer2 wrote: »

5.5% increase on the 36euro pack.

If anything the price should be coming down considerably as there are so many fta channels now and the standard of Sky's programming has seriously deteriorated .
Its all repeats ,dumbed down trash and reality tv .

Years ago when I only had a few channels I'd always find something to watch ,now with 100's of channels I find myself wading through an epg full of absolute trash .

winston_1

muffler wrote: »

A €2 rise on the basic pack costing €28 works out at more than 7% which is a hell of a lot more than any increase in the cost of living.

Cost of living plus increase in VAT. You didn't really think sky would absorb the VAT did you?

Wonder if sky will reduce the cost of subs in the Channel Islands where there is no VAT? LOL.

RED L4 0TH

Prices already gone up rather than in the new year?

Basic pack €29, variety pack €38.

http://www.sky.com/ireland/tv/

The Cush

Article in last week's Sunday Times on the VAT changes from Jan 1st

Under the new rules, which come into effect in January, VAT for telecom operators, broadcasting and ecommerce services will be payable in the country where customers are resident, rather than the online company’s European location.

The government expects to get €100m from Sky Ireland as a result but could potentially get hundreds of millions of euros on top of this. For 2015 and 2016, as a transition measure, any country that administers the VAT for EU companies keeps 30% of all returns paid out to fellow EU states. That falls to 15% per annum for the following two years.

http://www.thesundaytimes.co.uk/sto/news/ireland/Business/article1495625.ece?CMP=OTH-gnws-standard-2014_12_13