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Thursday, December 2, 2010

Everything Everywhere loses over £4 million after VAT case

everything everywhereEverything Everywhere is potentially £4 million out of pocket after losing a lengthy legal battle in the European Court of Justice today.

The case, which was originally brought by T-Mobile, involves the additional £3 charge made when customers don’t pay their bills directly from their bank account. T-Mobile said the additional charge was a payment handling charge and – as a financial service – shouldn’t be subject to VAT. However, the ECJ has now ruled it is simply an additional part of the mobile phone bill.

This all dates back to August 2005, when T-Mobile submitted a VAT claim for £4,063,228.08, saying this amount had been ‘overpaid’ for the period August 2003 until July 2005. However, the VAT Commissioners refused the claim, which led to the legal action.

Around 28% of the company’s customers don’t pay by BACS or direct debit.

The ECJ decision is likely to affect a large number of utility companies as well as other telecoms operators.

[Court judgement]

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Opinion Articles

Google Nexus One: quarterback or cheerleader?

Mark Bridge writes:

Four months ago, Google unveiled a new way for consumers to buy an Android mobile phone. In fact, that’s pretty much what the first line of the press release said. The phone was the Nexus One and it was being sold online by Google.

You could buy it SIM-free or you could buy it with a contract – but you’d be buying it from Google’s online shop. You couldn’t buy it on a real high street.

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Why Marketers and Copywriters might actually 'need' an iPad... and soon

John Forde writes:

As I sit tapping away on a keyboard, here at 30,000 feet above the Atlantic, I can't help but think...

Thank God Arthur Summerfield got it all wrong.

See, Arthur was the U.S. Postmaster General for President 'Ike' Eisenhower. And in 1959, he boldly predicted...

"Before man reaches the moon, your mail will be delivered within hours from New York to Australia by guided missiles. We stand on the threshold of rocket mail."

Imagine. I'd hate to think what spam would look like, under those circumstances.

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Google Dictation - "I shall say this only once"

James Rosewell writes:

Back in January 2010 I wrote a brief review of the Google Nexus One that included my thoughts on the not-so-accurate voice dictation feature. From the marketing hype, I had expected to simply speak into the phone and a few seconds later my words would appear as a perfectly formed text message. The reality was somewhat disappointing. For all but the simplest short phrases it struggled to produce the intended words, making it inferior to even the touch-screen keyboard.

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The iPhone and its data are still uneasy bedfellows

Mark Bridge writes:

Being an optimistic cynic isn’t easy. But, hey, I do my best.

Which is why I smiled benignly when I heard this week that WiFi provider The Cloud was offering a free app to O2 iPhone users. It's a simple tool called FastConnect and it'll make it easy for those O2 customers to find free WiFi access via hotspots powered by (you guessed it!) The Cloud.

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Mobile payments could be on the way after all

Mark Bridge writes:

Cash is still king… but its days are numbered. That’s the message from a new report published this week by the Payments Council.

The Payments Council, which is a group of financial institutions that sets strategy for UK payments, has released ‘The Way We Pay 2010’. It shows how the last decade has seen a fall in the percentage of transactions using cash, from 73% in 1999 to 59% in 2009. In just five years time, cash transactions are expected to represent less than 50% – and a further fall to 45% is expected by 2019. Meanwhile, debit card spending in the UK rose from £65 billion in 1999 to £264bn in 2009.

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