TalkTalk Telecom Ltd Loses VAT Discount Appeal Against HMRC in Landmark Tribunal Ruling

• TalkTalk Telecom Ltd’s appeal against HMRC regarding VAT discounts for prompt payment was dismissed by the Upper Tribunal
• The case involved a Speedy Payment Discount (SPD) offered by TalkTalk to retail customers
• The Tribunal ruled that VAT should be calculated on the full billed amount, not the discounted amount
• The terms of service did not allow for the SPD to be considered a discount for prompt payment
• TalkTalk was assessed for underpaid VAT amounting to £10,606,226 due to the incorrect application of the SPD

Source: bailii.org

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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