VAT Liability Timing for Lycamobile’s UK Telecom Bundles: Upper Tribunal Rules on Supply Point

The case concerns the VAT treatment of telecommunication plan bundles sold by Lycamobile UK Ltd.
Lycamobile argued VAT should be accounted for only when services in the bundle are used; HMRC argued VAT is due in full at the point of sale.
HMRC assessed VAT on the full value of plan bundles at sale, totaling over £50 million for 2017-2019.
The bundles varied: some included only usage allowances, others included additional value-added services or roaming features.
The First-tier Tribunal dismissed Lycamobile’s appeal, supporting HMRC’s approach.

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.