On 20 July 2017, the Government published regulations abolishing the “use and enjoyment” rule that currently applies to supplies of telecommunication services from business to individual (non-business) consumers. The new rules will come into effect on 1 November 2017.
The regulations will amend Schedule 4A, VATA, to provide that when UK customers use their mobile phones abroad they will be charged UK VAT regardless of where they are. Under current rules, UK VAT is chargeable when UK consumers use their mobile phones in the EU, but not when they are used in a non-EU country.
The “use and enjoyment” rule continues to apply to business to business consumers.
A copy of the regulations is available to view here.