I'm disputing an annual invoice for software maintenance - it's the first one I've received, and I reckon they've overcharged me, so I disputed it.
The annual charge for Support is 22% of the purchase cost of the software, and here's how they work it out:
1. Add VAT to the Purchase Cost
2. round up to the nearest £100
3. calculate 22% of the total
4. add VAT
So, I'm paying support costs for the VAT, and a few quid I didn't even spend, then being charged VAT for it - paying VAT on the VAT.
My question is - does this seem reasonable? I don't think it is, so I've only paid them 22% of the ex-VAT purchase price.
The supplier is a very large well-known company, and they're not responding to emails, or the dispute case I raised on their billing portal.