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Publish the correct incl-VAT and excl-VAT prices for European roaming

Publish the correct incl-VAT and excl-VAT prices for European roaming

When roaming outside the EU VAT area, no VAT is chargeable in accordance with Article 19 of the Value Added Tax (Place of Supply of Services) Order 1992. The United Kingdom opted to exempt non-EU VAT area roaming from UK VAT under Article 9(3)(a) of Council Directive 77/388 ("the Sixth VAT Directive") so that it could charge UK VAT on services used in the UK but billed outside the UK (e.g. US-based services marketed to UK residents). According to message 15 in this thread, giffgaff correctly charges no VAT when roaming outside the EU VAT area, but giffgaff's published prices do not currently reflect this. I also discussed last year in this thread how this issue relates to European roaming price caps.

 

The problem is that giffgaff's roaming pricing page shows only one set of prices for European roaming which includes VAT, even for roaming in European countries and territories where VAT is not charged.

 

The following table shows all the countries and territories where giffgaff charges European roaming prices:

 

 Inside EU VAT area
(UK VAT is charged)
Outside EU VAT area
(UK VAT is not charged)

European Economic Area
(so price caps under Regulation (EU) No 531/2012 apply)

All of the European Union except Gibraltar and parts of Finland, France and Spain
  • Iceland (EEA, non-EU)
  • Liechtenstein (EEA, non-EU)
  • Norway (EEA, non-EU)
  • Gibraltar (a special member state territory of the EU)
  • Åland Islands (autonomous region of Finland and in the EU)
  • French Guiana (an integral part of France and the EU)
  • Guadeloupe (an integral part of France and the EU)
  • Martinique (an integral part of France and the EU)
  • Réunion (an integral part of France and the EU)
  • Canary Islands (an integral part of Spain and the EU)
  • Ceuta (an integral part of Spain and the EU)
  • Melilla (an integral part of Spain and the EU)
Outside European Economic Area and European Union
(but where giffaff voluntarily applies European price caps)
  • Isle of Man (part of the UK's VAT area)
  • Monaco (part of France's VAT area)
  • Andorra
  • Faroe Islands
  • Guernsey
  • Jersey
  • San Marino
  • Switzerland

 

Other networks (e.g. EE and Vodafone) show roaming prices excluding VAT where no VAT applies, and it is unreasonable for giffgaff to expect consumers to divide its published prices by 1.20 in order to remove VAT and also to know which countries and territories are outside the EU VAT area. On 1st July 2014, giffgaff will be reducing its European roaming charges in order to comply with new lower European price caps coming into force. I therefore suggest that from this date, giffgaff show two columns of European roaming prices, one including VAT and the other excluding VAT, and also lists which countries and territories each column applies to.

15 Comments
ace of spades

[deleted - incorrect comment]

nfh
maestro

@endorphin- I think you've posted in the wrong thread. This has nothing to do with business or commercial use, but retail prices published to consumers, some of which are not subject to VAT.

nfh
maestro

I'll give an example. Giffgaff's roaming pricing page incorrectly states that outgoing calls from Norway are charged at 24p/min including VAT, whereas in fact they are charged at 20p/min without any VAT. I am suggesting that the correct charges should be published.

helper

Great idea, shouldn't be too difficult to implement. 

 

Definately would bring clarity to the pricing structure

ace of spades

Oops my mistake, sorry. I remember your original post on the subject here http://community.giffgaff.com/t5/Contribute/Potential-breach-by-Giffgaff-of-Regulation-EU-No-531-201...

rookie

I'm always in favour of improving the roaming services, so you have my kudos!

maestro
Still an issue eh? Remind me - do they actually charge the correct rates but show them incorrectly on the pricing pages, or do they actually charge what it says on the page?
nfh
maestro

@jpcjpc- Yes, according to message 15 in this thread, giffgaff correctly charges no VAT when roaming outside the EU VAT area, but giffgaff's published prices do not currently reflect this.

maestro
Thanks - at least they're actually legal then ;-)
nfh
maestro

In this thread today, three users gave incorrect answers when asked for roaming charges in Norway (which is the largest place covered by these incorrect charges). Why is giffgaff publishing misleading and confusing charges to its customers?