topic Charged VAT for a returned device in Devices

Charged VAT for a returned device

ShivangiK — Wed, 31 Jan 2024 23:41:19 GMT

Last month I took out a new mobile contract but then decided I didn’t want it so returned it within the 14 day cooling off period. But this month I noticed that I still get charged the VAT for the phone even though I returned the device. VAT charge is about £200

I spoke to someone from the complaints team today and they said that I will still get the charge for the VAT even though I returned it and they can’t remove it.

Has anyone experienced the same thing? Because this has never happened to me before

Re: Charged VAT for a returned device

sc1999 — Thu, 01 Feb 2024 09:10:44 GMT

Was the device an iPhone and did you enable "find my iPhone"?

Re: Charged VAT for a returned device

sc1999 — Thu, 01 Feb 2024 09:58:43 GMT

Forgot a couple of points. I asked about the iPhone as 3 charge £200 if an iPhone is returned with find my iPhone enabled.

threes-returns-exchange-policy-for-customers-who-joined-from-30th-jan-2023-on-three-your-way-and-connect-plans.pdf

Re: Charged VAT for a returned device

ShivangiK — Thu, 01 Feb 2024 10:48:37 GMT

Yes it was an Iphone and no I didn’t even open the box at all

Re: Charged VAT for a returned device

ShivangiK — Thu, 01 Feb 2024 10:53:10 GMT

This charge was just for the VAT of the phone. The lady from the complaints team said they can’t unfortunately remove the VAT charge which makes no sense because it’s been returned

Re: Charged VAT for a returned device

sc1999 — Thu, 01 Feb 2024 11:21:11 GMT

I assume you have an invoice, so ask for a credit note and see how they account for the vat. You can always talk to customs and excise as this sounds dodgy. Also, I would expect there to be a lot of chatter on the www as you can't be the only one.

Re: Charged VAT for a returned device

Officina-red — Thu, 01 Feb 2024 11:36:33 GMT

If you haven’t opened the box, Three can’t charge you for vat, I don’t advise phoning you need a record of the complaint, use the online complaint form and screenshot everything for your records.

Re: Charged VAT for a returned device

ShivangiK — Thu, 01 Feb 2024 11:43:31 GMT

Yes I was thinking the same yesterday! I forgot to ask to write their answers on my account so I have proof but I was so frustrated

Re: Charged VAT for a returned device

sc1999 — Thu, 01 Feb 2024 14:09:54 GMT

I have scoured, out of personal interest, various documents from 3 and there is NO mention of keeping the VAT. The only document that I cannot find a copy of is the device purchase agreement. I have been wracking my brains trying to think of anytime a customer, domestic or business, would not have had VAT refunded when goods were returned. There has to be another reason. I would ask for any documents that three has that states that they would keep the VAT. If they cannot provide anything I would sue them through the small claims court.

There has to be another reason otherwise there would be hundreds of people complaining about this. There have been a number of posts about returning routers, and 1 I can remember about a phone, but no posts about 3 not giving full refunds.

Did you get a freebie and did you return it?

Re: Charged VAT for a returned device

JonathanB — Thu, 01 Feb 2024 14:28:49 GMT

Hi @ShivangiK,

I strongly suspect there's been some sort of misunderstanding here. Our bills only show the overall VAT but this should automatically be factored into any credit, bank refund, or card payment reversal we apply. Please don't share any private information here of course but can you explain this in a bit more detail please?

From what I'm understanding your phone was worth approximately £1200 including VAT but only the £1000 has came back to you?

Is this against a Device Finance agreement, or did you buy the phone outright?

Thanks,
Jonathan

Re: Charged VAT for a returned device

ShivangiK — Thu, 01 Feb 2024 22:34:21 GMT

Hi Jonathan,

So my bill says this which will probably help understand it -

Total charges before VAT - £10.80

VAT at 0% on £1,138.00 CR - £0

VAT at 20% on £1,148.80 - £229.76

Total charges after VAT £240.56

And yes it was from a Device Finance agreement - Device plan amount: £1,138.00

I spoke to around 6 advisors in the last few weeks and they all mentioned not to worry and that I will get the refund back and when I spoke to the complaints team they said no you won't get the VAT charge back, so I'm really confused.

Re: Charged VAT for a returned device

ShivangiK — Thu, 01 Feb 2024 22:26:16 GMT

No I had no freebie, I didn't even open up the phone.

I was told that if I'm not happy with the response then I can contact The Financial Ombudsman Service. I have even previously returned an IPad somewhere else and was given the full refund back so not sure why I wouldn't now.

Thank you for having a look as well!

Re: Charged VAT for a returned device

ShivangiK — Thu, 01 Feb 2024 23:38:14 GMT

@JonathanB I may be getting this wrong but I assume my bill saying VAT at 20% on £1,148.80 is including the phone as well?

Re: Charged VAT for a returned device

JonathanB — Fri, 02 Feb 2024 12:09:21 GMT

The device value will have VAT on it, but that should be covered by a combination of an upfront payment, and the loan advance.

You might need to check further into the bill, but the actual due amount for that 1st Direct Debit should just be your airtime. I'm assuming based on the figures you shared around £13 including VAT?

If that's definitely not the case and you have a bill stating you have approx £200 to be collected let me know, and I'll see how we can get this looked into further.

Thanks,
Jonathan

Re: Charged VAT for a returned device

ShivangiK — Fri, 02 Feb 2024 13:08:24 GMT

So when I cancelled my contract I was put on a one month rolling contract instead which is added to the bill.

When I go further down my bill the breakdown looks like this -

25GB Lite SIMO 1M S - 11.87

25GB Lite SIMO 1M S - 16

One-off charges

Early Upgrade Fee - 164.30

Apple iPhone 15 Pro Max 256GB Black T - 1,002.50

Monthly Service Credit - 45.87

Which when all added up gets to 1148.80

And yes I've already had the £240 come out of my account today unfortunately

Re: Charged VAT for a returned device

sc1999 — Fri, 02 Feb 2024 13:16:55 GMT

Early Upgrade Fee - 164.30. You will have to pay that as it will be the balance owing on your previous device/airtime contract and is not VAT. This leaves £75.30 to identify assuming that your £240 is exactly that amount.

Re: Charged VAT for a returned device

ShivangiK — Fri, 02 Feb 2024 13:47:00 GMT

That I understand but the bill shouldn't say - VAT at 20% on £1,148.80 - £229 - It should deduct the cost of the phone when calculating the VAT as it's been returned

The advisors also agreed and said that I was charged more on VAT

Re: Charged VAT for a returned device

ShivangiK — Fri, 02 Feb 2024 14:21:37 GMT

@JonathanB So someone from the complaints team called me and said they won’t be able to refund it but she will check if it can be adjusted on my next bill

Re: Charged VAT for a returned device

JonathanB — Fri, 02 Feb 2024 15:05:42 GMT

Hey @ShivangiK,

Glad to hear they're working on this for you. I do think there may some discrepancy here. Please let us know what happens when they're in touch again.

Thanks,
Jonathan

Re: Charged VAT for a returned device

Brotherkennyh — Fri, 23 Feb 2024 13:45:05 GMT

You should absolutely get the VAT back if the phone was unopened and unused.
I suspect Three have some accounting issues going on at the moment that they are keeping quiet about.

I have recently asked for my Business account to be billed Ex VAT. Three now tell me that's not possible. They must bill me for the VAT and I have to claim it back. Happy to do it, just never heard of that before.