The UK Government announced in the Budget on 8 March 2017 that it will remove the use and enjoyment provision for mobile phone services provided to UK consumers, meaning that UK VAT will apply when customers use their phones outside the EU.

This comes at a difficult time for the telecoms sector that has been dealing with various regulatory changes designed to reduce roaming charges, and the new measure will increase costs for them.

Telecoms providers have limited time to react to this change as a statutory instrument to implement it will be published before 20 July 2017.

Read more from the UK Budget Statement: What you Need to Know.