Did Telkom mess up my bill?

[cr@zydude]

I have a few questions about my April Telkom bill and I've attached my calculations below. I know that VAT went up from 14% to 15%, but the numbers still don't make sense. I've attached an image of my calculations, my understanding is that both the March and April without VAT values should be the same. Without VAT values calculated as with VAT values x 100/114 for March and with VAT values x 100/115 for April.

It looks to me like my internet service fee went up by R2. The other differences are just rounding issues, but I don't know why my internet service fee went up. Is Telkom overcharging me?

Also, it looks like I'm being charged 15% VAT now on my device fees. Accounts help me out, but shouldn't those stay at 14%. The phone and modem were sold to me when VAT was 14%, the fact that I'm paying for them over 2 years shouldn't change that fact.

View attachment 522919

 

[RedhotNeo]

VAT is now 15%.. everything has gone up

 

[cavedog]

I have a few questions about my April Telkom bill and I've attached my calculations below. I know that VAT went up from 14% to 15%, but the numbers still don't make sense. I've attached an image of my calculations, my understanding is that both the March and April without VAT values should be the same. Without VAT values calculated as with VAT values x 100/114 for March and with VAT values x 100/115 for April.

It looks to me like my internet service fee went up by R2. The other differences are just rounding issues, but I don't know why my internet service fee went up. Is Telkom overcharging me?

Also, it looks like I'm being charged 15% VAT now on my device fees. Accounts help me out, but shouldn't those stay at 14%. The phone and modem were sold to me when VAT was 14%, the fact that I'm paying for them over 2 years shouldn't change that fact.

View attachment 522919

The attachment does not work. You have a point there. Does the VAT increase apply to device fees because it shouldn't as the stuff were sold before the VAT increase.

 

[cr@zydude]

VAT is now 15%.. everything has gone up

I know that, I think that there is a different issue.

The attachment does not work. You have a point there. Does the VAT increase apply to device fees because it shouldn't as the stuff were sold before the VAT increase.

It seems to open fine for me, other times it displays in my post. Will try re-uploading.

 

[supersunbird]

Did they not perhaps have a fee increase?

 

[WalkWithMe]

I have a few questions about my April Telkom bill ..

Also, it looks like I'm being charged 15% VAT now on my device fees. Accounts help me out, but shouldn't those stay at 14%. The phone and modem were sold to me when VAT was 14%, the fact that I'm paying for them over 2 years shouldn't change that fact.

VAT is a tax on top of the fee. The device fee never increased, the tax did. You pay the rate defined by SARS/Government at the time of invoice. If tax goes up, so does the service. This is not defined by the vendor.

As for the rest. Is this values taken off the invoice or are you reverse calculating them? Without seeing the invoice, very hard to comment.

 

[cr@zydude]

VAT is a tax on top of the fee. The device fee never increased, the tax did. You pay the rate defined by SARS/Government at the time of invoice. If tax goes up, so does the service. This is not defined by the vendor.

As for the rest. Is this values taken off the invoice or are you reverse calculating them? Without seeing the invoice, very hard to comment.

I am doing a reverse calculation.

As I understand it my device fee isn't a service fee, but is an installment payment. Since I bought the phone and modem before 1 April 2018, my installments should include 14% VAT, as the sale was concluded at 14% VAT rate.

 

[WalkWithMe]

I am doing a reverse calculation.

As I understand it my device fee isn't a service fee, but is an installment payment. Since I bought the phone and modem before 1 April 2018, my installments should include 14% VAT, as the sale was concluded at 14% VAT rate.

VAT is collect for SARS from providers/resellers. There fee remained the same which is what is the contract amount. The law requires the price to include tax. VAT is a statutory requirement and changes is passed onto the public. You fighting the infight-able. Complain to the Treasury/SARS. Read your contract terms around tax section.

 

[cr@zydude]

VAT is collect for SARS from providers/resellers. There fee remained the same which is what is the contract amount. The law requires the price to include tax. VAT is a statutory requirement and changes is passed onto the public. You fighting the infight-able. Complain to the Treasury/SARS. Read your contract terms around tax section.

I am perfectly fine with my fee for data, minutes and smses to increase with the VAT increase, as these services are rendered monthly and are thus taxed at the higher rate now.

However, I think that my installments on paying off my phone and modem should not increase as their sale took place at 14% VAT. I am simply paying those items off over 24 months.

It also looks like my internet service fee went up exclusive of VAT.

 

[WalkWithMe]

I am perfectly fine with my fee for data, minutes and smses to increase with the VAT increase, as these services are rendered monthly and are thus taxed at the higher rate now.

However, I think that my installments on paying off my phone and modem should not increase as their sale took place at 14% VAT. I am simply paying those items off over 24 months.

The installment never increased, the tax did. Tax is not defined in the contract it is added onto the monthly fee.

It also looks like my internet service fee went up exclusive of VAT.

No idea, ask Telkom.

 

[xodosman123]

No getting away from that extra 1 % Vat....So it can and will be wasted on something else...

 

[Other Pineapple Smurf]

I am doing a reverse calculation.

As I understand it my device fee isn't a service fee, but is an installment payment. Since I bought the phone and modem before 1 April 2018, my installments should include 14% VAT, as the sale was concluded at 14% VAT rate.

VAT is determined at time money changes hand, not at time invoice is created. There was discussion at work how we would handle unpaid orders the moment we moved over to 15% VAT.

This is why you could have been invoiced at 14% on March 31st but would have had to pay 1% more on April 1st if you only paid then.

 

[AchmatK]

VAT is determined at time money changes hand, not at time invoice is created. There was discussion at work how we would handle unpaid orders the moment we moved over to 15% VAT.

This is why you could have been invoiced at 14% on March 31st but would have had to pay 1% more on April 1st if you only paid then.

Incorrect. Vat is invoice(accrual) based and only under certain instances can you request to be on the cash basis.

Accounting for VAT

As VAT is an invoice-based tax, vendors are generally required to account for VAT on the invoice (accrual) basis, but the payments (cash) basis is allowed in some cases. The payments basis of accounting is only available to specified qualifying vendors and is subject to prior approval being obtained from SARS. Special rules also apply as to how certain supplies are accounted for, regardless of the accounting basis which the vendor uses to account for VAT.

Refer to the VAT404 guide. http://www.sars.gov.za/AllDocs/OpsD...AT 404 Guide for Vendors - External Guide.pdf

 

[Other Pineapple Smurf]

Incorrect. Vat is invoice(accrual) based and only under certain instances can you request to be on the cash basis.




Refer to the VAT404 guide. http://www.sars.gov.za/AllDocs/OpsD...AT 404 Guide for Vendors - External Guide.pdf

Thanks. Got me to look deeper into this and quickly came across a site explaining how the date of issuing the invoice to the client is critical. I incorrectly understood it as when payment was made. I ended up being on leave when final discussions where held about unpaid invoices and the 15% VAT implications so never bothered to follow up.

http://www.webberwentzel.com/wwb/content/en/ww-press-releases?oid=61585&sn=Detail-2011&pid=32711

 

[RedhotNeo]

I have a few questions about my April Telkom bill and I've attached my calculations below. I know that VAT went up from 14% to 15%, but the numbers still don't make sense. I've attached an image of my calculations, my understanding is that both the March and April without VAT values should be the same. Without VAT values calculated as with VAT values x 100/114 for March and with VAT values x 100/115 for April.

It looks to me like my internet service fee went up by R2. The other differences are just rounding issues, but I don't know why my internet service fee went up. Is Telkom overcharging me?

Also, it looks like I'm being charged 15% VAT now on my device fees. Accounts help me out, but shouldn't those stay at 14%. The phone and modem were sold to me when VAT was 14%, the fact that I'm paying for them over 2 years shouldn't change that fact.

View attachment 522919

View attachment 522923

Checked your 2nd image. you not supposed to be paying extra for your device repayment. that is sold to you without VAT. So there is something wrong. i checked with my telkom bill (land line), i have my telkom LIT box and that figure has not changed... well hopefully it doesnt