Archive for the 'Billing' Category

Important Notice of Upcoming VAT Changes

Friday, March 12th, 2010

Please Note: The following announcement only applies to customers billed in British Pounds or Euros. Users with USD accounts will be unaffected.

The recent changes in the UK’s VAT rate—from 17.5% to 15%, and back to 17.5% this year—highlighted a number of weaknesses with our current model, where VAT is reflected in our per-minute rates.

In an effort to be more open and flexible with our billing practices from April 1st we will be reducing all of our call, SMS, and Incoming Number rates for new and existing customers by 17.5%, and adding a 17.5% charge at checkout under the heading “taxes, surcharges, and fees”. All prices on the website will be shown inclusive or exclusive of VAT at your preference.

We will also be reducing your current balance to reflect this change, but it is important to stress that no customer will be worse off as a result.


Bob has a balance of £10 and is currently paying 10p per minute for his calls. This means that he has 100 minutes of talk time remaining.

On April 1st we will reduce Bob’s balance by 17.5% to £8.51 (£10 / 1.175), but also our rate per minute will go down to 8.5p per minute. Bob will still have 100 minutes of talk time remaining.

When Bob places a £10 order in the future, VAT will be added and he will pay £11.75. We will, however, give the option of reducing the order to £8.51 of credit for which he will pay £10.

I hope this e-mail provides a full explanation and plenty of notice for the upcoming change. Please don’t hesitate to get in touch if you have any questions.

No Rate Increase with UK VAT

Friday, January 1st, 2010

As you may be aware, from Friday 1st January 2010 the UK’s VAT rate is going back up from 15% to 17.5%.

Most companies will be increasing their prices to compensate, but to celebrate another successful year at Localphone we’re going to keep our rates as they are, effectively giving a 2.5% discount across all destinations.

Thank you for your support in 2009. We’re looking forward to some exciting new developments over the coming months.

Please note that this notice affects our GBP and EUR customers. Users with USD accounts do not pay VAT.

Pay for Your Localphone Credit with Ukash

Friday, May 1st, 2009

We’re pleased to announce that you can now pay for your Localphone calling credit with Ukash for all top-ups of £10 / $10 / €10 or more.

Ukash is a cash payment system that lets you make payments online without a credit / debit card or bank account. You can buy Ukash vouchers from local retailers in over 20 countries, as well as on-line or with your mobile in certain countries.

Next time you want to purchase your Localphone calling credit simply visit Your Dashboard and select 10 or more from the “Quick Top-up” amounts in the sidebar. On the next page click on the Ukash logo at the bottom and fill out your voucher details.

For more information about Ukash, and to find your nearest merchants, please visit the Ukash website.

If you have any questions, comments or other feedback please don’t hesitate to let us know.