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IrishBroadBand and VAT overcharging

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  • 08-02-2003 12:46pm
    #1
    Chaos-Engine
    Closed Accounts Posts: 772 ✭✭✭


    I have discovered that Irish Broadband want me to pay 21% VAT on my Installation fee. This is WRONG..
    They should be charging only 12.5% as it is a service as Irish Broadband own all the equipment they install in your house. They are therefore overcharging us for VAT as we aren't recieving a Product. Just a Service..

    Has anyone else tried raising it with them?
    If you have payed 21% surely they owe their customers VAT, (Or atleast the equipment) :)


Comments

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    #2
    SkepticOne
    Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    They should really be quoting VAT inclusive prices on their website for all residential services.


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    #3
    STaN
    Registered Users Posts: 2,127 ✭✭✭STaN


    force the issue, your in the right!

    Also, get in contact with ComReg with regards to their misleading pricing scheme.

    Installation should be marked as €354.38 not €315


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    #4
    PiE
    Registered Users Posts: 5,538 ✭✭✭PiE


    Originally posted by Chaos-Engine
    They are therefore overcharging us for VAT as we aren't recieving a Product. Just a Service..

    Has anyone else tried raising it with them?
    If you have payed 21% surely they owe their customers VAT, (Or atleast the equipment) :)

    If that's true, wouldn't it apply to all the DSL offerings too? They all clearly state 21% VAT.


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    #5
    davros
    Closed Accounts Posts: 857 ✭✭✭davros


    Here's a list (from the horse's mouth, i.e. Revenue) of VAT rates applicable to particular services.

    Telephone service is 21%.


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    #6
    Mountjoy Mugger
    Registered Users Posts: 4,487 ✭✭✭Mountjoy Mugger


    Originally posted by davros

    Telephone service is 21%.

    IBB don't provide a telephony service, do they?


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    #7
    yellum
    Closed Accounts Posts: 5,025 ✭✭✭yellum


    Originally posted by Mountjoy Mugger
    IBB don't provide a telephony service, do they?

    Its a Telecommunications service though. And we all know when in doubt when it comes to VAT it will always be the higher one.


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    #8
    SkepticOne
    Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    Has someone contacted them about this? It is in their interest to charge as little VAT as possible since it gets passed on to the State. Paying more VAT than necessary simply adds to their costs and pushes up the VAT inclusive retail price. If they were able to charge a lower VAT rate, then they could lower the retail price and sell more whilst retaining the same ex-VAT margins.

    In any case, they should be quoting VAT inclusive pricing on their website. This is the convention for consumer services.


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    #9
    Pepe LeFrits
    Users Awaiting Email Confirmation Posts: 15,001 ✭✭✭✭Pepe LeFrits


    Originally posted by davros
    TELECOMMUNICATIONS SERVICES 21.0


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    #10
    STaN
    Registered Users Posts: 2,127 ✭✭✭STaN


    the installation isnt a telecommunications service

    it would be the same as an electrician coming out to install a new phone socket or something, which is a service which would be 13.5% ?


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    #11
    davros
    Closed Accounts Posts: 857 ✭✭✭davros


    Originally posted by STaN
    the installation isnt a telecommunications service

    it would be the same as an electrician coming out to install a new phone socket or something, which is a service which would be 13.5% ?
    It's a fair point. "Repairs" and "Plumbing" are both charged at 13.5% on that list.

    How about querying it to your local Inspector of Taxes? There is a list of phone numbers here. Let us know the answer.


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    #12
    Chaos-Engine
    Closed Accounts Posts: 772 ✭✭✭Chaos-Engine


    Originally posted by davros
    It's a fair point. "Repairs" and "Plumbing" are both charged at 13.5% on that list.

    How about querying it to your local Inspector of Taxes? There is a list of phone numbers here. Let us know the answer.


    Thats great
    Thanks for the help

    One problem
    I haven't payed for the service yet. I will be however.
    It is more of a question or enquiry as to who has and are they aware or not...
    I would like to pay teh correct tax for the service not the product(for which there is none)


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    #13
    topgold
    Registered Users Posts: 179 ✭✭topgold


    Seems to me that the government could do its part to put broadband in every home by having the Minister of Finance announce a finding that VAT on telecommunications services is 13.5%. I don't think that kind of VAT concession has any support around the cabinet table.


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