- The Upper Tribunal (UT) upheld the First-tier Tribunal’s (FTT) decision that VAT is due at the point of sale for Lycamobile’s prepaid telecoms plan bundles, not as services are used.
- The UT confirmed that the bundles do not qualify as vouchers under VAT law, either before or after 1 January 2019.
- Retrospective VAT adjustments are required for non-EU roaming services used before 1 November 2017, but otherwise VAT is due immediately upon purchase.
- The UT found that value added services included in bundles are ancillary to a single composite supply, not separate supplies.
- Lycamobile’s appeal against HMRC’s £50 million VAT assessment was dismissed, providing clarity that VAT is due on the grant of rights to access services, regardless of actual usage.
Source: saffery.com
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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