On 21 April 2017, the government published a draft statutory instrument for the purposes of removing the “use and enjoyment” rule for B2C supplies of mobile phone services.

Currently, telecommunications services provided to individual consumers that are effectively used and enjoyed outside of the EU are not subject to UK VAT. From 1 August 2017, in order to prevent VAT avoidance and to make the UK VAT rules in this area consistent with the approach of other EU member states, UK VAT will apply to mobile phone services supplied to UK individuals wherever those services are used.

The draft legislation can be viewed here