As we already have informed you the VAT rate will increase from 17.5 % to 20 % on January 4th, 2011.
Please be advised of the following impacts:
- The increase in the rate of VAT will apply to all telephone services, including premium rate services operating on the number ranges 0871/0872/0873 and 09XY.
- To offer some examples, services costing 50p, ₤1 or ₤1.50 per minute today may cost users up to 51p, ₤1.02 or ₤1.53 per minute (including VAT) respectively, from January 4th, 2011.
- For 09XY numbers amending of promotional material in line with the date of effect for the increase in VAT is required. Where a service also carries a requirement to provide verbal pricing upon connection, then the same requirement also applies.
- Service promotions which carry long shelf-lives or long lead times in print media are expected to be changed at the first available opportunity. If the increase in VAT is expected to have a significant impact on the overall cost of a specific service, in the interim period adding a recorded message at the start of the service explaining the change in VAT and the new cost of the service per minute (or the total cost of the call in the case of a drop-charge service) would be appropiate.
- 0871/0872/0873 numbers: The caller rates will increase from 5p and 10p per minute up to 5.1p and 10.2p per minute. It´s not necessary for those providing these services to alter promotional material immediately. In case of future new promotions the new caller rates should be considered.
- The maximum call duration has to be adapted to the new tariffs as well (the limit of ₤30 per call stays as it is). If you for example are using a 09XY number with a tariff of ₤1.50 per minute calls already will have to be disconnected after 19 minutes (instead of 20 minutes).
- In the new Code of Practice, which is expected to come into force in the second half of 2011, all limits (eg. ₤30 per call) will become VAT-exclusive.
- If due to the increase in caller rates an operating service would in fact require prior permission (especially because of exceeding the tariff limit of ₤1.50 per minute), so as an exception no prior permission is necessary anyhow.
Don´t hesitate to contact us in case of further questions.
With best regards,
Although this information has been compiled with extraordinary diligence, telequest & Internet Solutions GmbH assumes no liability for their up-to-dateness, completeness and correctness.
The customer is in spite of handing out this information obligated to gather all necessary information about the legal and regulatory provisions and the Code of Conduct of the particular country himself.