At Spring Budget 2017, the Government announced that it would reduce the use and enjoyment provisions for B2C telecommunication services. On 21 April 2017, it published draft legislation to give effect to this statement, removing the “use and enjoyment” rule that currently applies to supplies of mobile phone services from business to individuals. 

The draft legislation amends Schedule 4A of the Value Added Tax Act 1994 (VATA), to provide that from 1 August 2017 UK VAT will be charged on all telecommunication services used outside the EU by UK customers.

The draft legislation is available to view here.