TalkTalk Telecom Ltd Loses VAT Discount Appeal Against HMRC in Landmark Tribunal Ruling

• TalkTalk Telecom Ltd’s appeal against HMRC regarding VAT discounts for prompt payment was dismissed by the Upper Tribunal
• The case involved a Speedy Payment Discount (SPD) offered by TalkTalk to retail customers
• The Tribunal ruled that VAT should be calculated on the full billed amount, not the discounted amount
• The terms of service did not allow for the SPD to be considered a discount for prompt payment
• TalkTalk was assessed for underpaid VAT amounting to £10,606,226 due to the incorrect application of the SPD

Source: bailii.org

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