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

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Corporation Tax

Premiums on the grant or surrender of a lease

Premiums on the grant or surrender of a leasePremiums on the grant of a lease ― outlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease.

14 Jul 2020 12:58 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more

Corporation Tax

Research and development expenditure credit (RDEC)

Research and development expenditure credit (RDEC)This guidance note provides information on how research and development expenditure credits (RDEC) are calculated and utilised. The Qualifying expenditure for R&D tax relief guidance note provides information on what expenditure qualifies for

14 Jul 2020 13:24 | Produced by Tolley in association with Will Sweeney Read more

Owner-Managed Businesses

Repairs and renewals

Repairs and renewalsThe key consideration in determining whether expenditure on repairs and renewals is allowable as a deduction for tax purposes is whether it is capital or revenue in nature. In some cases, it can be relatively straightforward to identify revenue repairs. HMRC provides the

14 Jul 2020 13:23 | Produced by Tolley Read more

��˾��ҹ��