The Government has temporarily reduced VAT from 17.5% to 15% - and we're passing this saving on to our customers.
The 2.5% VAT reduction will be applied to your price plan from Monday 1 December - which means our prices will be lower.
If, for example, your current price plan is £25 per month, you’ll pay just £24.47 per month while VAT remains at 15%. You don’t need to do anything – we’ll adjust your bill automatically.
The VAT on usage charges, that’s things like calls and texts, will also be reduced whilst VAT is 15%.
Have all prices been changed?
The VAT reduction applies to almost everything we sell. And, as you’d expect, were passing these savings on. Whilst VAT remains at 15%, our price plans and all our phones and devices will include VAT at 15%.
If you’re visiting our new online shop, price plans include VAT at 17.5%. Don’t worry – we’ll automatically reduce the VAT on your monthly bill whilst VAT is at 15%. All phone and device prices will be shown at the correct price.
If you are looking at our call charges section, these rates will be shown at the 17.5% VAT rate. Don’t worry, whilst VAT is at 15%, you’ll be charged a lower rate on your bill.
I bought a mobile phone in November, but now want to return it. Will I be refunded VAT at 17.5% or 15%?
You will be refunded at the VAT rate on the day you bought the phone.
Will everything on my bill be reduced to the new VAT rate?
No, not all of our services carry VAT. For example, insurance and calls made outside of the EU are not subject to VAT – so the price of these items will remain the same.
If you're a business customer
The VAT reduction applies to our business customers too. Which means you’ll pay just 15% VAT for as long as this rate remains. You don’t need to do anything – we’ll adjust your bill automatically.
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The Government has temporarily reduced VAT from 17.5% to 15% - and we're passing this saving on to our customers.
From 1 December we’re giving you the benefit of the VAT reduction and a little more, by adding bonus credit to your top-up.
Which top-up methods does this apply to?
All top-up methods – voucher, registered credit/debit cards, e-swipe card, ATM, online, etc.
Which top-up values does this apply to?
All values - £5, £10, £15, £20, £25, £30, £40, £50, £75.
How much extra credit do I get on my top-up?
We’re adding 2.5% to every top-up while VAT remains at 15%. The attached document shows how much bonus credit you’ll get when you top up.
Isn’t 2.5% just the VAT saving – where’s the extra?
VAT has been reduced from 17.5% to 15%, which equates to an actual saving of 2.13%. To make things simple, and ensure you got the most benefit, we’ve rounded up the credit bonus on each top-up to 2.5%.
Why can’t I just pay less for my top-up?
By giving you extra on your top-up, we’re giving you the benefit straight away - and making sure you get it.
No matter where you buy your top-up, the VAT on that top-up is paid by Vodafone and not by the independent retailers or banks. This means there is no opportunity to reduce the retail price for a top-up.
Does the VAT reduction apply to phones, devices and accessories?
The VAT reduction applies to almost everything we sell. As you’d expect, were passing these savings on to you. While VAT remains at 15%, all our phones, devices and accessories will include VAT at 15%.
If you’re visiting our new online shop, all phone prices will be shown at the correct price.
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The Government has temporarily reduced VAT from 17.5% to 15% - and we're passing this saving on to our customers.
For our small to medium size business customers
Please see the Pay monthly tab for relevant information.
For our corporate customers
How will the VAT reduction appear on my bill?
On your December bill, the VAT for line rental, which is charged for in advance, will be 15%.
All applicable call charges shown on your December bill will include VAT at 17.5%. Because of the limited time between the Government's announcement of the temporary change in the VAT rate and the date of implementation, we have been unable to make the necessary software changes to our billing system in time for December bills.
This is being addressed and the software will be adjusted in time for January 1.
From January, you will be charged 15% VAT (while VAT remains at this rate) for both line rental and applicable call charges.
Please note: You’ll be able to claim back all of the VAT shown on your bill, including VAT at the 17.5% rate, against the November call records that appear on your December bill. (HM Revenue and Customs are aware of the situation.)
If your business is exempt or partially exempt from VAT, we’ll issue you a credit note to reduce the VAT to 15% upon request. We're putting a system in place to manage this, and will let you know how to request a credit note soon.
Should I pay a bill I receive where there’s some VAT at 15% and some at 17.5%?
Please pay any bill you get in full. You can recover the VAT charged through your VAT return, unless you are exempt or partially exempt from VAT.
If you are exempt or partially exempt from VAT, we’ll issue you with a credit note to reduce the VAT to 15% upon request. We’re putting a system in place to manage this, and will let you know how to request a credit note soon.
Can I calculate the full amount at 15% and reduce my payment to you?
No, calculating VAT is complex and certain items on your bill don’t carry VAT. Don’t worry - if you’re exempt or partially exempt from VAT, we’ll issue you a credit note to reduce the VAT to 15% upon request. We’re putting a system in place to manage this, and will let you know how to request a credit note soon.
What if I receive a quarterly bill?
If you’re billed quarterly, any calls made before 1 December will be rated at 17.5% VAT.
I bought a mobile phone in November, but now want to return it. Will I be refunded VAT at 17.5% or 15%?
You will be refunded at the VAT rate on the day you bought the phone.
Will everything on my bill be reduced to the new VAT rate?
No, not all of our services carry VAT. For example, insurance and calls made outside of the EU are not subject to VAT – so the price of these items will remain the same.
What should I do if I need to find out more?
Please contact your usual service contact or account manager for specific enquiries about your account.
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