11/27/2008 5:31:00 PM
Orange gives customers early VAT saving on handsets
Orange has announced it will offer customers VAT savings on handsets ahead of the next week's government cut.
The operator will bring VAT savings forward by two days in an attempt to lure customers, who received their last pre-Christmas pay cheque this weekend.
The saving will affect all handsets bought on prepay and contract. Customers whose handsets were free with their contract will not get the saving. The VAT saving will be available online, in-store and through telesales.
VAT reduction will be initiated on Orange customer’s bills from 1 December (when the reduction officially comes into force.)
Sian Doyle, director of Orange retail said; ‘This is great for our customers, as they don’t need to wait until next week to get the benefit of the 2.5% VAT reduction. This weekend is a very important trading weekend for Orange Retail, as it is the last pay cheque before Christmas so customers will want to do their Christmas shopping now.’
Orange is the first retailer to reveal a strategy connected to the VAT changes. An industry expert told Mobile recently: ‘There’s a horrible amount of work in putting a blanket 2.5% discount across the board. On a contract customer, how the hell do they do that? It’s a massive ask for an operator to implement in the billing systems.’
This follows the announcement made this week by chancellor, Alistair Darling. In his pre-budget Darling stated that VAT would be decreased from 17.5% to 15%.