Market leading insight for tax experts
View online issue

Lycamobile: can phone bundles lead to VAT blunders?

Speed read
In Lycamobile UK Ltd, the FTT found that payment for a bundle of telecoms and ancillary services, which was available to the consumer for a set period, was a single supply of telecoms subject to VAT upon payment of the price rather than when the telecoms are used, as Lycamobile argued. The FTT rejected the appellant’s alternative argument that the consideration paid for the bundle of services was a voucher outside the scope of VAT until the services were used. The FTT considered a variety of issues, including questions of time of supply, the voucher rules, the use and enjoyment provisions and whether, despite a lack of a proper legal basis to do so, a taxpayer can be required to make subsequent adjustments to VAT on the full price paid for the bundle of services depending upon the consumer’s use of those services outside the EU.

If you or your firm subscribes to Taxjournal.com, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
EDITOR'S PICKstar
Top