UK Seeks to Eliminate “Use and Enjoyment” Provision for Certain Telecommunication Services

Charles Riordan

June 6, 2017

This blog was last updated on June 27, 2021

The UK government has introduced draft legislation that would apply VAT to telecommunications services used outside of the European Union by private UK customers. Under current “use and enjoyment” provisions, such services are not subject to VAT when used outside of the EU. The government claims that this change will remove any ambiguity about place of supply for telecommunications services, by sourcing all such transactions to the location of the customer. If passed, the measure would become effective on August 1, 2017.

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Author

Charles Riordan

Charles Riordan is a member of the Regulatory Analysis team at Sovos specializing in international taxation, with a focus on Value Added Tax systems in the European Union. Charles received his J.D. from Boston College Law School in 2013 and is an active member of the Massachusetts Bar.

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