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Can you explain the adjustments due to the VAT reduction/increase that were made to my invoice?

VAT Increase - Jan 4th 2011

VAT has been scheduled to change once again as of Jan 4th 2011 to increase to 20% from 17.5%. As 1&1 is prepared for this change your invoice following Jan 4th 2011 will be adjusted accordingly to reflect the increase in VAT.

Domains renewed or newly registered before Jan 4th 2011 will be charged the 17.5% VAT rate. Domains renewed or newly registered after Jan 4th 2011 will be charged the new VAT rate of 20%.

VAT Reduction - Dec 1st 2008

On Nov 24th 2008 the Chancellor announced that the standard rate of VAT would be reduced to 15% as of Dec 1st 2008. We are happy to pass on these savings to you. However, as changes to the VAT rate are seldom, and because many of our products are billed months in advance, our billing systems require that we create new invoices with the adjusted price.

As of Jan 1st, 2010 VAT will return to 17.5%.

To help you better understand the different charges, we'll explain below how the adjustments were applied and how we have credited them.

Why have I received so many invoices?We apologise for the inconvenience of the extra invoices that you have recently received, however it was necessary in order to ensure that you have an accurate invoice for any items spanning the time frame in which the VAT was reduced.

If your invoice included items that were charged in advance for services or products that will be used after Dec 1st 2008, we have cancelled the original invoice in its entirety and created a new invoice with the correct VAT rate for your records.

As you have already paid the amount in full, we will not recharge you the new amount, rather, we will simply credit your account with the adjusted amount, for all amounts over £3. If your adjustment is under £3, we will simply refund the amount on your next invoice.

However, the corrected invoices are for your records only. Only the amount of the adjustment will be credited to you. We will not rebill your account.

Why is there so little explanation with invoice numbers?In order to make sure that your adjustment was processed as soon as possible, our systems were not able to be updated with VAT specific information. Due to the vast amount of products we offer and the different billing combinations, multiple adjustments were needed and updating the systems with longer explanations would not have allowed us to process your adjustment in time.

Why wasn't I simply credited the adjustment?The invoices were created to make sure that you have an accurate invoice for the time spanning the VAT change. The difference you are owed due to the VAT reduction will be credited to your account.

How have we calculated the amount for Domain names?If your domain was registered or renewed before Dec 1st 2008 then the 17.5% VAT rate was applied to your purchase. Any domain that was registered or renewed after Dec 1st 2008 will be calculated with the 15% VAT rate.

As of Jan 1st 2010 VAT will return to 17.5%.

Please contact our Billing Support if you have any further questions at: billing@1and1.co.uk