- The Upper Tribunal ruled that VAT is due upfront and in full on the sale of mobile plan bundles, not just on usage.
- Lycamobile’s arguments that VAT should only arise when services are used, or that bundles are multi-purpose vouchers, were rejected.
- The court held that customers pay for the availability of allowances, not just their usage, and the plans are not vouchers for future services.
- Businesses offering similar bundles should review their VAT accounting and consider voluntary disclosure for unpaid VAT over the past four years, as the decision is binding for similar cases.
Source: mha.co.uk
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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