It Free, and he no longer included. On Wednesday, the operator had to start sending a letter to subscribers announcing that the subscription "triple play" to 29.99 euros per month, including Internet, telephone and television, would soon disappear. As of February 1, subscribers who wish to maintain unbundled the same offer today and will have an option to purchase the card and pay at least 31.98 euros per month. The information was recorded Tuesday night by several specialized sites, which have received confirmation from the operator.
This disruption rates Free is a consequence of the increase in VAT on subscriptions "triple play" decided by the government in the fall.Until then, Internet service providers benefited from a reduced VAT rate to 5.5% for half the price paid by subscribers (or 60% in the case of Free), which corresponded to the part of the television in their packages. From 1 January, the full rate of 19.6% must be applied in full. Instead of lowering their tax price to save their clients, most operators have warned that they would increase retail prices mechanically, two or three euros.
TV optional at 1.99 euro
According to information released Tuesday evening, the Free solution is more original. As previously announced, the operator has peeled the legislation and found several flaws. Thus, the Finance Act 2011 stipulates that indeed "unique offerings" sold at a "fixed price", that is to say subscriptions "triple play" can no longer benefit from a reduced VAT rate .But the 5.5% VAT may still apply for subscription television services specifically paid by customers outside of these "unique offerings."
Unlike its competitors, Free Radical therefore decided to break the package "triple play" which is renowned for transforming the TV costs extra and continue to enjoy this part of a reduced VAT rate of 5 , 5%. From 1 February, its subscribers will have to pay an extra 1 payday advance.99 euro to get the 180 supply chains, bringing the total bill to 31.98 euros in unbundled areas (and 35.98 euros in non-unbundled) . They can terminate or renew the option every month and enjoy, whatever their choice of video on demand and subscription to CanalSat.
For these customers, the difference in treatment compared to Orange and SFR may seem marginal.If Free had applied a rate of 19.6% in the block, they should have paid only 25 cents more each month. But the accounting trick the operator is real. With Option "TV" Free pay about thirty cents less VAT per package than what the government could wait without losing money. With over four million subscribers, it can represent at least 1.2 million saved per month.
"Ideas just pests"
The other trick, more importantly, the payment of the tax Cosip. Telecom operators contribute to this account to support the audiovisual industry in exchange for the reduced rate of VAT on television services. Last year they spent about 100 million euros to this fund.
Free, who had protested against this "tax the Internet" in 2007, has finally found a way to drastically reduce its scope.Instead of applying on 45% revenue packages "triple play" is about 13.5 euros, the tax base will focus solely on the revenues of the separate option, and will be even more paid at all for customers who will not support it. The sampling rate, calculated according to revenues from television operators, will also be lowered.
For the founder of Free, Xavier Niel, these tips are "Smart Ideas, a little pest", but no cases of fraud. A habit for the Internet access provider, which also is trying to escape another tax on its new Freebox. On Monday, the Ministry of Economy had warned that its services will screen the new operator offerings to ensure compliance with new rules related to the VAT hike.
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