Question

Are renewal quotation prices on the online account inclusive or exclusive of VAT?


Userlevel 1

Are renewal quotations obtained via myovo inclusive or exclusive of VAT?


12 replies

Userlevel 7
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Hey there @martinkressman ,

As far as I’m aware, they should be inclusive of VAT at 5%. The quote given should have everything factored in except for any add-ons like OVO Beyond. :)

Userlevel 7

What was the verdict on that renewal, @martinkressman

Userlevel 1

Atrocious. It took weeks of arguing to get the quotation to be honoured. They then added 5% VAT on top of the VAT inclusive price. Am still trying get get this refunded.

Userlevel 7
Badge +3

Hi @martinkressman ,

Thanks for getting back to us. The forum is volunteer led, so I can’t access your account, but I think there might be a little confusion here. The way that the bills show as a breakdown in your account is that everything - including VAT - is broken up into different elements, so that you know exactly what you’re paying, how much goes into what things and how OVO figured it out. The actual final values do include VAT, but the breakdown shows each element without it.

While it seems a bit strange, I can assure you that the 5% VAT is only added once on each statement. If you were to add 5% to each of the other elements and add those together, it would account for where the VAT comes from.

Userlevel 1

The quote via MyOVO was Day Rate 19.78p/kWh, Night rate 11.76p/kWh, Standing charge 20.75p/day inclusive of VAT. My statement for February/March then had 5% VAT added to this.

Userlevel 7
Badge +3

Gotcha. Thanks @martinkressman .

The thing to note here is actually about how the VAT is calculated and presented. The switching and renewal quotes do clearly show everything with VAT as is common with all suppliers. But in common with all the others I know of, the statements show VAT independently. It seems you might be getting confused there. The OVO Energy app does also state that the billing history shows everything Ex VAT and the VAT is referenced as a list item.

While it might sound counter-intuitive, it’s actually not. Here’s an example. This is a quote I can get right now if I signed up today - with VAT factored in. This is an example one that I generated just a few minutes ago, but not for my address.

And this is my live plan.

Personal info has been redacted, but it does clearly state on both sides as to how the VAT is handled. The quotes for switching/renewing have “higher” rates because they include the VAT element - the info in MyOVO under Plan doesn’t factor this in but you are actually getting the quoted rates once the number crunching is all done.

Userlevel 7
Badge +3

If you think you might be overcharged though, I’d recommend having a chat with the Support Team by Phone or Live Chat and someone can double check.

Please let the agent know you’ve had a chat with Blastoise186 on the Forum and provide a link to this thread. I’m well known to quite a lot of the teams and trusted these days, so if you allow the agent a moment to read through the thread, they’ll be able to get up to speed with what’s been said here. It will help.

Userlevel 1

After two weeks OVO Energy have finally accepted they were wrong to add VAT to the VAT inclusive quoted price and have nowcorrected the error.

Userlevel 7

That’s so strange, @martinkressman - so unlike what @Blastoise186 outlined above, your prices on your online account after the renewal showed the VAT added prices, and then added VAT on top?

 

@Blastoise186’s explanation is what should happen, I can only guess what happened in your case…..

Userlevel 1

Correct.

Userlevel 7

In that case, thanks for flagging this directly and sharing it here @martinkressman. If anyone else is effected, they’ll be able to spot what Should happen, and check if they’ve had the same issue as you. 

 

Would you be happy if we marked @Blastoise186’s answer above as the solution? That way, what Should happen is right below your question for others to refer to...

Userlevel 1

The solution was to pester Complaints to get the situation resolved.

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