Removal of the use and enjoyment provision for telecommunication service sales to UK consumers


HMRC have published draft legislation which will remove the VAT use and enjoyment provision for businesses selling telecommunication services to consumers (B2C).

When this legislation comes into force (which is expected to be 1 August 2017) UK VAT will be charged on all telecommunication services used outside the European Union by UK consumers. This is instead of the current treatment which avoids the need to charge UK VAT on these services.

This is being implemented in order to align the UK VAT rules with the Organisation for Economic Co-operation and Development’s (OECD) international VAT and GST guidelines.

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