Sky customer warns of satellite VAT
Friday 18th April 2008, 2:29PM BST.
Sky TV customer warns other islanders of VAT billing error.
A SKY customer believes islanders may unwittingly be paying the satellite provider VAT.
Colin Kimber and his fiancee started subscribing to Sky in November 2003 and only discovered recently they had been charged VAT by the company every month up until February.
He estimates that they have lost out on around £500 as a result and had it confirmed two weeks ago by the company that they would not be reimbursed the amount.
It was only after a conversation about Sky packages with his fiancee’s father that Mr Kimber discovered he had been paying around £10 more a month.
‘We had the same package apart from the £6 I pay for MUTV. He was paying £33 a month, but somehow I was paying £49.50.
‘He said to me, “I bet you’re paying VAT”, because he had been through the same thing.’
Mr Kimber and his partner then followed this up with Sky and after a number of painstaking phone calls, established that they had indeed been charged VAT.
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The practice by Sky of charging VAT to its Channel Island customers is I think unlaw due to a ruling by the European court.
Anyone who has been charged VAT by Sky and has been told that they would not be reembursed by Sky should contact the Trading Standards Office in Fife where Sky is based. Web page http://www.tradingstandards.gov.uk/fife/about.htm
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My partner recently challenged the Sky “discount” of 15% offered to Channel Isands questioning whether this discount was the the VAT element of the subscription rate, and whether this discount could be withdrawn by Sky. She received a reply stating “Sky’s subscription prices are set at one price throughout the UK, Channnel Islands and Isle of Man. In relation to these prices, neither UK VAT nor Jersey GST forms part of the amount Sky charges. Your contract with Sky is at the price advertised, with Sky being responsible for accounting for any VAT where applicable”. It goes on to say that “Sky is not obliged to offer discount to it’s Channel Islands customers. While there is currently no end date to the offer, it may be withdrawn by Sky at any time and cannot be used in conjunction with any other offer”. (The letter is available to view)
The question is, are Sky being generous to the Channel Islands with the 15% discount (that can be withdrawn at any time!) or are they pulling the wool over our eyes??
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