In Hutchison 3G UK v HMRC [2018] UKFTT 289 (1 June 2018) the FTT found that VAT was payable on the supply of telecoms packages including mobile phone usage abroad.
Mobile network operators impose roaming charges on customers using their phones outside the UK. However H3G unilaterally changed the terms it gave to its customers with a set allowance. Use of their mobile abroad simply counted towards their allowance under the ‘feel at home’ package.
Business to consumer (‘B2C’) telecommunications services are not subject to UK VAT if they are ‘effectively used and enjoyed’ outside the UK. This meant that prior to H3G’s change of charging method roaming charges imposed on the use of a mobile phone abroad were not subject to UK VAT. As a result of H3G’s change of policy HMRC now took the view...
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In Hutchison 3G UK v HMRC [2018] UKFTT 289 (1 June 2018) the FTT found that VAT was payable on the supply of telecoms packages including mobile phone usage abroad.
Mobile network operators impose roaming charges on customers using their phones outside the UK. However H3G unilaterally changed the terms it gave to its customers with a set allowance. Use of their mobile abroad simply counted towards their allowance under the ‘feel at home’ package.
Business to consumer (‘B2C’) telecommunications services are not subject to UK VAT if they are ‘effectively used and enjoyed’ outside the UK. This meant that prior to H3G’s change of charging method roaming charges imposed on the use of a mobile phone abroad were not subject to UK VAT. As a result of H3G’s change of policy HMRC now took the view...
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