From 1 November 2017, when a UK individual uses a UK mobile phone outside the EU, UK VAT will be charged.
HMRC have published a policy paper, 'VAT: telecommunication services used outside the EU – use and enjoyment rule removed', which advises that from 1 November 2017, UK place of supply of services law will be changed to conform with EU law in relation to telecommunication services.
From 1 November 2017, the place of supply of telecommunication services when made to consumers (B2C supplies) will be based on where the consumer ‘belongs’. That will be the country in which the person’s usual place of residence or permanent address is.
This will mean mobile phone charges, when a UK person uses their UK mobile phone outside of the EU, will be subject to UK VAT. Until 1 November 2017, the use and enjoyment rules apply, such that the costs are not vatable to the extent they relate to non-EU use.
Links
Place of supply: Mini One Stop Shop (MOSS)
Wouldn’t it be great and think how much TIME it would SAVE you if someone:
- READ all the latest tax news, case decisions, new legislation and articles in tax and then summarised them for you?
- Only alerted you to things that are RELEVANT to you?
How about if that someone also:
- Updated those summaries in REAL TIME for you
- ADDED examples, planning points, toolkits and calculators, and
- Linked all that information together and also provided you with CPD?
Thousands of firms of accountants and advisers are already using www.rossmartin.co.uk as their primary TAX resource.
At a cost of just £1 per day, it’s a no brainer: FREE up your MIND and your TIME (and your wallet).
And...we run our Virtual Tax Partner support service, if you need assistance with a particular query or technical issue.