- Lycamobile provided ‘Plan Bundles’ of mobile phone services to customers in the UK
- Customers may not use their full allowances by the end of the contract period
- Lycamobile argued that VAT should only be paid when customers use their allowances
- HMRC challenged this and argued that VAT should be paid at the point of purchase
- HMRC issued three VAT assessments totaling £51m
- Lycamobile appealed to the FTT
- FTT determined that VAT should be paid at the point of sale for the Plan Bundles
- Decision could impact Lycamobile’s business and other mobile network operators
- Decision provides helpful discussion on the nature and timing of a supply for VAT practitioners.
Source: rpc.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
