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VAT on mobile phone services

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The government announced in the Budget on 8 March its intention to remove the VAT ‘use and enjoyment’ provision for mobile phone services provided to consumers. The current rules mean that providers do not have to account for UK VAT when customers use their phones outside the EU. The change will bring services used outside the EU within the scope of UK VAT. This, the government says, will bring UK VAT rules in line with the internationally-agreed approach.

The change is to be introduced by secondary legislation, before the Parliamentary Summer recess.

Issue: 1346
Categories: News , Indirect taxes , VAT