As I'm sure you're all aware, VAT dropped has dropped to 15% from 17.5%. Vodafone is passing these savings directly on to the customer.
This takes place in two ways:
1). Cost savings on tariffs
Vodafone is continuing to advertise their tariffs at the pre-VAT change prices, and these prices appear on-site. However, they are passing these savings on to the customer. Vodafone will reduce the actual VAT charge on customer's monthly bill to 15% for as long as this rate remains.
2). Price reductions on devices
Vodafone has passed the saving on directly to the customer within device pricing. This means that the VAT reduction has been reflected in the pricing of handsets (on both contract tariffs and
Pay As You Talk),
mobile broadband devices and accessories.
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