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VAT rate FAQ

VAT decrease 23% to 21% from 1st September 2020

The Government of Ireland announced as part of its July 2020 stimulus plan that the standard rate of VAT is to be reduced from 23% to 21% for a period of 6 months from 1st September 2020 to 28th February 2021.

Tesco Mobile will pass on the 2% VAT reduction in store and online from 1st September until 28th February 2021.

You will find the reduced VAT on your bill and prepay customers will get a little more credit per top up/a VAT reduction on their services.

Do you need more information on the VAT reduction? You can find more details below:

  1. In which period does the VAT reduction apply?
  2. The reduced VAT applies to Tesco Mobile services provided between 1st September 2020 and 28th February 2021.

  3. What services does VAT apply to?
  4. The reduction in VAT applies to services that are normally subject to regular VAT, such as internet, TV and telephone.

  5. Does the VAT reduction mean that my overall bill price is reduced by exactly 2%?
  6. The VAT rate decrease from 23% to 21% is applied on the monthly cost of your plan excluding VAT so is not a direct 2% reduction on overall bill price. Please see below example VAT calculation where this is explained in detail.

    Example VAT calculation for €30 monthly plan:

    • Plan cost at current 23% VAT rate
    • Price excl VAT: €24.39
    • VAT @ 23%: €5.61
    • Price incl VAT: €30
    • Plan cost at new 21% VAT rate
    • Price excl VAT: €24.39
    • VAT @ 23%: €5.12
    • Price incl VAT: €29.51
  7. Are individual phone calls on my mobile plan also affected by the VAT reduction?
  8. For phone calls between 1st September 2020 and 28th February 2021, we will be charging 21% VAT.

  9. When will I see the VAT reduction in my monthly bill?
  10. The VAT reduction applies to services provided between 1st September 2020 to 28th February 2021. You will see this reflected in your next bill/on My Tesco Mobile after 1st September 2020.

  11. As a prepay customer, will I also receive the VAT reduction?
  12. We are passing on the reduction in VAT via an additional credit per charge/services. For top up made in the period from 1st September 2020 to 28th February 2021, we will also credit the customer account with VAT reduction on the top up amount.

    Example: With a top up of €15, we will credit the customer account with €15.24. This does not apply to add-ons. The credit of the additionally granted credit for top up via vouchers, ATMs, payment terminals and direct debit/convenience top up takes place at the same time as the top up.

  13. Will the VAT reduction affect the price of new phones?
  14. Yes. All phones in store and online will feature the 2% VAT reduction.
    For example: A phone that was €150.00 will now cost €147.55.

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