Charged VAT for a returned device

[ShivangiK]

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

[sc1999]

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

[sc1999]

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-con...

[ShivangiK]

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 

[sc1999]

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. 

[ShivangiK]

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

[Officina-red]

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. 

[ShivangiK]

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 

[sc1999]

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?

[ShivangiK]

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!