In Lycamobile UK Ltd v HMRC [2024] UKFTT 638 (TC) (18 July) the FTT decided that VAT at the standard rate should have been accounted for on the full amount payable for mobile phone plan bundles at the time the supplier received the consideration because it found that the customers were paying for a single supply of telecommunication services.
The case concerned supplies of plan bundles (calls text messages and data) made by Lycamobile UK Ltd (the appellant) to UK customers. The FTT found that the principal supply was that of telecommunication services and that any other services customers were entitled to access were an ancillary element of a single supply of telecommunication services. The FTT referenced the decisions in Card Protection Plan Ltd v HMRC (Case C-349/96) and Purple Parking Ltd and another v HMRC (Case C-117/11) in support of this finding.
The FTT rejected the...
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In Lycamobile UK Ltd v HMRC [2024] UKFTT 638 (TC) (18 July) the FTT decided that VAT at the standard rate should have been accounted for on the full amount payable for mobile phone plan bundles at the time the supplier received the consideration because it found that the customers were paying for a single supply of telecommunication services.
The case concerned supplies of plan bundles (calls text messages and data) made by Lycamobile UK Ltd (the appellant) to UK customers. The FTT found that the principal supply was that of telecommunication services and that any other services customers were entitled to access were an ancillary element of a single supply of telecommunication services. The FTT referenced the decisions in Card Protection Plan Ltd v HMRC (Case C-349/96) and Purple Parking Ltd and another v HMRC (Case C-117/11) in support of this finding.
The FTT rejected the...
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