09/16/2011, 03:12 PM
Just to add here that I've also managed to cancel my vodafone contract, and indeed the VAT is deducted (not applied). Assuming the £10.50 x 24 months contract, the total 'early termination fee' payable is ~£205, if done within days after activation (there might be another £10.50 charge, since it takes 30 days for the cancelation to take into effect, but I'm not sure). To get the VAT relief, you need to pay this in one go, by credit/debit card. Otherwise, if you pay this as part of the 'closing bill' it will be taxed (so £252 in total in that case).
I did this over the web chat (will pop up soon after you enter that page). A friendly representative answered all my questions and completed the payment and cancelation form for me. The other option is to send them an e-mail or letter (as per 11.6(iii) of terms&conditions).
nb: I was asked not to cancel my direct debit until after the cancelation date, for charges arising from using the line (which I'm not intending to use). I hope there is nothing else added...