Spring Budget; VAT on Mobile Phone Services

Under current VAT legislation, there is a ‘use and enjoyment’ provision in place in relation to mobile phone services provided to UK customers. This provision allows for services of this nature that are used and enjoyed outside the EU to be outside the scope of UK VAT.

However, on implementation of the changes outlined in the most recent Budget, this will no longer be the case and businesses who provide these services will be required to account for the appropriate rate of UK VAT, regardless of where they are ‘used and enjoyed’. As mentioned within the Budget announcement, this amendment to current legislation will align UK VAT rules with the internationally agreed approach.

Any business providing, or otherwise utilising, services of this nature should seek to clarify their VAT position by contacting one of our expert consultants through our free VAT helpline.

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