Have you got a smartphone in France?

In which case, you might be interested in this....



http://www.france24.com/en/20101226-french-smartphone-users-get-holiday-gift-phones

And a Google translation of what Orange have to say about it;

Until the end of 2010, offers operators containing television services benefit from a rate of VAT reduced on 50% of HT. The Financial Services Act 2011, passed December 29, 2010 provides for the transition to a single VAT rate of 19.6% on the deals called “composite” dice 1 January 2011.

This translates into a rate increase inclusive of the tender concerned.
This provision is common to all operators.
Orange has decided to pass on the increase in VAT only invoices issued after 1 February 2011.
The answers on this page:
how to know if I am concerned by the increase in VAT?
How much will my job Does increased?
on what date the change of VAT intervene to?
what about other operators?
why Orange reflected the increase in VAT from its customers?
increases if my subscription, can I cancel?
when can I cancel?
when will I receive the 200 points available Change Program for Mobile
how to make an offer portability to Orange mobile?
what are the relevant internet offers?
when will I receive 2000 points offered more Internet Program

how to know if I am concerned by the increase in VAT?

Your bill shows the rate of VAT which you are bound to be 19.6 and 5.5%, all at 19.6%. If you’re in the first case you are concerned about the increase.

On the other hand, Orange warned affected customers by e-mail or post during December 2010, pursuant to Article L121-84 of the Consumer Code. This letter communicates the new rate applied from 1 February 2011 and the rights to this contractual change.
How much will my job Does increased?

The increase of VAT from 1 February 2011 will be of the order of 1 to € 3 per month for each respective offer.
download rates of Internet broadband and fiber offerings on sale
you have an offer Optimal Internet discovery

on what date the change of VAT intervene to?

The Act came into force on 1 January 2011 however the new rates on the deals involved will be applied from 1 February 2011 by Ora

Info from Orange.fr http://assistance.orange.fr/hausse-de-la-tva-offres-mobile-1269.php

Due to a rate increase in VAT, from 5.5% to the standard rate of 19.6% your mobile operator is obliged to allow you to terminate you contract. As of 1 Feb this rate increase will apply and you should be able to terminate your contract and keep your existing handset. After a bit of digging it would appear tht we may have up to 4 months from 1st Feb 2011 to to this.

You should have received a letter or an email (in December) from you mobile operator alerting you of the rate hike. I haven't.

In my case this means that I can cancel a two year contract on two iPhone 3gs's and benefit from subsidised rates for new iPhone 4's if I wish. Then I can sell the old phone, so it's basically a free upgrade, if you sell your old handsets.

We might find that the market becomes saturated with 'last year's model' so if you want to take advantage of this rare opportunity to get something back from the Telecom giants. Act quickly - but not before the 1st Feb!

If you have any further info on this, or have received the letter, please let us know in the comments.

Thanks

James