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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

Last week at The Fonecast: 23rd September 2013

Black days for BlackBerry

Mark Bridge writes:

There are bad weeks... and there are BAD weeks. Blackberry had one of the latter. It all started so well. The company announced a new flagship phablet – the Z30 – and said it would be launching its BBM instant messaging service for iOS and Android handsets at the weekend.

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Last week at The Fonecast: 16th September 2013

iPhone, iPhone, so good they made it twice

Mark Bridge writes:

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Author: The Fonecast
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EC's Neelie Kroes says ‘we must act now’ to change European telecoms rules

Mark Bridge writes:

Following Wednesday’s ‘State of the Union’ speech by EC President Jose Manuel Barroso, EC Vice-President Neelie Kroes has emphasised the urgency of changing the way telecoms companies operate across Europe.

Ms Kroes wants to cut red tape, end roaming charges, reduce call costs and introduce ‘net neutrality’ across Europe.

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Last week at The Fonecast: 2nd September 2013

Breaking up is profitable to do

Mark Bridge writes:

So – we take a short break at the end of the August ‘silly season’ and one of the year’s biggest mobile-related rumours becomes fact. At least we’re back in time to report on the final stages of the Vodafone/Verizon deal. Yes, it looks as though Big Red will be picking up something like $130 billion for its 45% stake in Verizon Communications… possibly within the next few hours. Just don’t mention the tax, okay?

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GSMA not cowed after EC compares mobile calls with milk

Mark Bridge writes:

In this week’s podcast we talked about a recent European study into call costs that had been highlighted by European Commission Vice President Neelie Kroes.

We agreed the headline was shocking - but also said there were potentially many other tariff factors that weren’t being compared.

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