Lycamobile UK Ltd – Taxpayer has appealed to the Upper Tribunal – VAT treatment of consideration received from customers – are services supplied and VAT due when consideration received – are bundles vouchers
Lycamobile UK Ltd, a mobile virtual network operator, has appealed to the Upper Tribunal regarding the VAT treatment of consideration received from customers for telecom bundles. The case involves whether VAT is due when payment is received or when services are used. The First-Tier Tribunal (FTT) previously ruled that payment for telecom bundles constitutes a single supply of telecom services, with VAT due at the time of payment, dismissing the taxpayer’s argument that these bundles should be treated as vouchers. The Upper Tribunal will now review this decision.
Source KPMG
