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Charged VAT for a returned device

ShivangiK
Fledgling

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

20 REPLIES 20
sc1999
Local celebrity

I agree about the VAT refund however every VAT registered company must charge VAT which you must pay, even if you are not registered. If you are VAT registered then the VAT you pay out becomes an input. All VAT you put on your sales invoices becomes an output. Every quarter all outputs - all inputs = the amount payable to HMRC. If you are VAT registered you must charge, and collect, VAT on your sales. There is no such thing as allowing your customers not to pay the VAT on your invoices. 

How VAT works: Overview - GOV.UK (www.gov.uk)