VAT increase prompts BT charge cap changes

Tuesday, 21 December 2010 12:00

Plans to reformulate charge caps for calls to some BT numbers so they exclude VAT have been announced by Ofcom.

At present, the cost of dialling numbers beginning with the 0843, 0844, 0871, 0872, 0873 and 09 prefixes include VAT at 17.5 per cent, but the upcoming VAT increase on January 4th has prompted the communications regulator to make the change.

It means the maximum amount BT will be able to charge customers calling these numbers will be calculated by adding VAT - at whatever rate it is set at - to the existing cost.

"The aim of this amendment is to bring the impact of VAT charges on these numbers into line with all other goods and services," Ofcom said in a statement.

It comes after the regulator launched a consultation on the issue in October, which was welcomed by BT.

The telecoms provider stated it "fully supports" Ofcom's position, noting it mirrors how VAT charges are applied elsewhere in the economy.

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