Newsletter October 2017

VAT on Roaming Charges


This change takes effect from 1 November 2017 and alters the place of supply for VAT purposes of mobile telecommunication services made to U.K. non-business users (for example, private consumers) when they use their mobile phones outside the E.U. It aligns the U.K. treatment of these services with internationally agreed guidelines.

The changes means that UK VAT will be charges on roaming services used by UK consumers outside the E.U.

The intention is to resolve the inconsistency between the taxation of mobile phone use in the E.U. and that applied to outside the E.U. the change will bring UK VAT rules into line with the internationally agreed approach and it will also ensure mobile phone companies cannot use the inconsistency to avoid U.K. VAT.

Whilst talking about roaming, mobile roaming charges across the E.U. finally ended on 15 June 2017 amid warnings to consumers to check their tariffs and remain aware of unexpected costs.

The charges that were abolished, means U.K. mobile phone users can use their regular allowance of calls, texts and data for no extra cost from anywhere in the E.U.

The Roam Like Home legislation aims to prevent consumers receiving huge bills after downloading films or other data while travelling in Europe, but BBC watchdog has warned that differences between providers when it comes to the details of tariffs could lead to unexpected costs for customers.

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