Domestic reverse charge ― wholesale electronic communication services

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides an overview of the scope of the domestic reverse charged applied in respect of wholesale electronic communication services. This note should be used in conjunction with the Domestic reverse charge ― overview and Domestic reverse charge ― accounting requirements guidance notes.

Background

HMRC announced that the scope of the reverse charge is extended to cover supplies of wholesale telecommunication services, including satellite, in the UK with effect from 1 February 2016. The changes will impact the following types of businesses:

•
airtime carriers
•
network operators
•
message hubbing providers
•
short messaging service (SMS) and voice aggregators

VATA 1994, ss 1(2), 55A; Value Added Tax (Section 55A) (Specified Services and Excepted Supplies) Order 2016, SI 2016/12; Revenue and Customs Brief 1 (2016); VAT notice 735, para 3.7

The changes are applicable to the wholesale buying and selling of telecommunication services in the UK. The term ‘wholesale’ will mean business-to-business supplies where the receiving business intends to resell the supply with no or negligible consumption

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Owner-Managed Businesses

Allowable deductions for employee-related expenses

Allowable deductions for employee-related expensesThis guidance note covers the tax treatment of some common types of trading expenditure relating to employees. Some of these are disallowable under general principles, for example the wholly and exclusively test or capital versus revenue expenditure.

14 Sep 2022 09:49 | Produced by Tolley Read more

Personal Tax

Timing of disposal for capital gains tax

Timing of disposal for capital gains taxDate of disposalThe date of the disposal determines the period in which the gain is subject to capital gains tax (CGT). When the rates of CGT change, the determination of the date of disposal can also affect the rate of CGT that applies to the gain.See the

14 Jul 2020 13:50 | Produced by Tolley Read more

Year-end tax planning

Employment Tax

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more

��˾��ҹ��