Information to anyone purchasing the ESP (Warranty)

Saxo Appeal

Distinguished Member
I have just purchased the extended warranty with Microsoft for the ESP (Microsoft Complete)

Just before I made the payment I noticed the TAX was 23%, surely this shouldn't be seeing how we live in the UK and it should be 20% instead ? Do you think I should contact them and explain?

Before anyone asks, yes this was purchased through the UK (GB) Store

I have taken a screenshot to show you

upload_2014-4-28_18-5-48.png
 

shuflie

Active Member
It could be because the service is provided by Microsoft Ireland, Irish vat rate is 23%. You certainly get to speak to someone in Ireland when you call support.
 

Saxo Appeal

Distinguished Member
Shouldn't be 23% though! I'm in the UK not Ireland :(

Nee reading Xbox Support on this matter, some are stating it could be illegal because they have worded it wrong and it's the incorrect VAT percentage

Xbox.com Forums
 

shuflie

Active Member
Shouldn't be 23% though! I'm in the UK not Ireland :(

Nee reading Xbox Support on this matter, some are stating it could be illegal because they have worded it wrong and it's the incorrect VAT percentage

Xbox.com Forums
No, I pretty sure that the extended warranty is a service provided to you from outside the uk, i.e. from Ireland. Have a read of the rules on VAT for services inside the EU.
HM Revenue & Customs: How to work out your place of supply of services for VAT
 

Saxo Appeal

Distinguished Member
If that is the case then it should be clearly stated in the ordering process
 
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shuflie

Active Member
Actually it looks as if what you are buying is not an extended warranty from Microsoft Ireland, it is an insurance policy giving breakdown cover from a UK insurance company with their headquarters in Nottingham. Feel free to follow their complaints procedure outlined in the contract.
Code:
Complaints: Sales, Service or Claims If you have any questions or concerns about your Policy or our service, you may contact us at Complaints Department, Microsoft Corporation, One Microsoft Way, Redmond, WA 98052-9953 USA. or to one of Microsoft’s telephone representatives at the telephone number found at  http://support.microsoft.com or via email: [email protected]  Microsoft Corporation will contact You within five days of receiving Your complaint to inform You of what action We are taking. We will try to resolve the problem and give You an answer within four weeks. If it will take longer than four weeks We will tell You when You can expect an answer. If We have not given You an answer in eight weeks or You have received Your final response from Us and are still not satisfied, We will tell You how You can take Your complaint to the Financial Ombudsman Service for review
 

Saxo Appeal

Distinguished Member
Actually it looks as if what you are buying is not an extended warranty from Microsoft Ireland, it is an insurance policy giving breakdown cover from a UK insurance company with their headquarters in Nottingham. Feel free to follow their complaints procedure outlined in the contract.
Code:
Complaints: Sales, Service or Claims If you have any questions or concerns about your Policy or our service, you may contact us at Complaints Department, Microsoft Corporation, One Microsoft Way, Redmond, WA 98052-9953 USA. or to one of Microsoft’s telephone representatives at the telephone number found at  http://support.microsoft.com or via email: [email protected]  Microsoft Corporation will contact You within five days of receiving Your complaint to inform You of what action We are taking. We will try to resolve the problem and give You an answer within four weeks. If it will take longer than four weeks We will tell You when You can expect an answer. If We have not given You an answer in eight weeks or You have received Your final response from Us and are still not satisfied, We will tell You how You can take Your complaint to the Financial Ombudsman Service for review

Really.... This should be interesting!

Think an email is going to be written today for a call back from this department

Where did you find this information about Nottingham mate?

Is what there doing illegal?
 

Saxo Appeal

Distinguished Member
I found the info regarding the Insurance company in Nottingham
Market Square House
 
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nstokes

Well-known Member

Saxo Appeal

Distinguished Member
That doesn't matter, did you also pay the 23% VAT?

Ok I called Xbox and spoke to a guy called Henry in Estonia

He agreed with all the information I told him and he is going to Flag this issue up with a higher tier. Said he will contact me within a couple of days or sooner, he's already sent me an Email so I can contact him

He did sound surprised/shocked on the phone when I told him that Xbox has been charging hundreds of customers an extra 3% VAT and what Xbox is doing could be illegal. Told him about the address of the insurance company and that I had taken screenshots of everything.

Will report back on this thread when I hear of anything new :)
 

Saxo Appeal

Distinguished Member
Been looking at my picture again at the top of this thread

Looks like it's just a glitch with their System because they do have the Text

Tax @ 23.00% - £13.80
Tax @ 20.00% - £0.00

Wonder how many people have been charged this and are they in hot water for this?
 
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Lostsoul 301281

Distinguished Member
That doesn't matter, did you also pay the 23% VAT?

Ok I called Xbox and spoke to a guy called Henry in Estonia

He agreed with all the information I told him and he is going to Flag this issue up with a higher tier. Said he will contact me within a couple of days or sooner, he's already sent me an Email so I can contact him

He did sound surprised/shocked on the phone when I told him that Xbox has been charging hundreds of customers an extra 3% VAT and what Xbox is doing could be illegal. Told him about the address of the insurance company and that I had taken screenshots of everything.

Will report back on this thread when I hear of anything new :)

This is good to know as I've yet to buy the ESP.
 

nstokes

Well-known Member
When i brought it was also charged the 23% tax
 

nstokes

Well-known Member
When did you purchase the ESP and did you notice the 23% at the time?
Dont remeber the date of the top of my head but i think it was about Feb time. Tbh i never realised about the 23% till this thread
 

Saxo Appeal

Distinguished Member
A guy over on HUKD has posted that he actually called MS and was able to get the ESP for £59.99

He sent me the receipt and it was just that he paid as there was £7.82 Tax

I can't understand why/how he managed to get it for this price
 

turk3y

Well-known Member
A guy over on HUKD has posted that he actually called MS and was able to get the ESP for £59.99

He sent me the receipt and it was just that he paid as there was £7.82 Tax

I can't understand why/how he managed to get it for this price

From my understanding for retail purchases the price shown has to be inclusive of tax, its only trade sellers that can pop tax on at the end, it should be 59.99 and whatever the tax is being part of that value surly?

xbox market place purchases are an example of this, no doubt tax makes up a portion but what they tell you the game costs is what you pay.
 

Saxo Appeal

Distinguished Member
We need a legal person here to correctly identify who's right and who's wrong

some evidence that MS shouldn't be adding the VAT at the end

I know of one company that adds the VAT at the end which is Ironmongery direct
 

Saxo Appeal

Distinguished Member
Good news on this one after I made it aware to Amtrust (provider of cover)

I first contacted the Financial Ombudsmen who told me to contact FCA
Then I called the FCA who told me to contact HMRC

Couldn't get anyone at HMRC so I decided to call the people that govern the said policy who is AmTrust

Zoe has just called me to say she has spoken to the underwriters and this was an error due to it being a new product and thanked me for bringing this to her attention.
Because I did this she has refunded the £13.80 to my account and they are now proceeding to fix the problem so that customers are just charged the 20%

I asked her what would be happening to the hundreds of people that were charged the 23% and she said they have to sort the error out first then they will be refunding everyone that has purchased the ESP the extra they were charged

This is fantastic news and it's been actioned pretty quickly so well done AmTrust Europe Limited

Look forward to your refund soon folks :) The price of £59.99 is what we should be paying

I wonder what or if Microsoft will give customers something for over charging us ?
 
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Saxo Appeal

Distinguished Member
Just spoke to a Supervisor regarding this in Ireland, call them up in regards to another issue and proceeded to tell him about the 23%. He said he'd had an issue like this before and he put his question to the top and they came back stating that the because the Console originated from (can't remember if he said America or Ireland)

He is calling me back tomorrow so I'm going to explain to him that because the Insurance company was in fact in Nottingham why should we be charged 23% as it's a third party dealing with it.
 

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