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HM Revenue and Customs Brief 58/09

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HM Revenue and Customs -Tax Authorities

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Issued 02 October 2009

VAT: Relocation of telecommunication service providers Internet service providers and broadcasters

This Revenue & Customs Brief is of interest to all businesses within the telecommunications, Internet service provision and broadcasting sectors who claim to have moved or may consider moving the place of supply of their services from the UK to another Member State. The purpose of this Brief is to explain HM Revenue & Customs (HMRC) concerns and intended response and to encourage you to discuss these arrangements with your Customer Relationship Manager or the alternative contact given below.

HMRC are aware that some businesses within the telecommunications, Internet service provision and broadcasting sectors have implemented arrangements that claim to move the place of supply of their services from the UK to another Member State in order to take advantage of more favourable VAT rates.

The place of supply of telecommunications, Internet service provision and broadcasting services when provided to non-business customers in the EU is the place where the supplier is established. Some suppliers to the UK market claim to have reorganised their businesses so that the place of supply is no longer in the UK but another Member State.

HMRC accepts that businesses have the freedom to choose where to locate and to enjoy any resultant benefits.

However, HMRC will carefully examine all such arrangements. Where HMRC considers that there are sufficient human and technical resources in the UK to form a fixed establishment from which the services are supplied, or where the entity purporting to make the supplies does not have a sufficient presence in the other Member State to be established there, HMRC will mount a robust challenge.

Any business wishing to discuss their arrangements should contact either their Customer Relationship Manager or Peter Langton at Large Business Service, 101 Victoria Street, Bristol, BS1 6DQ; Tel: 0117 9838317 in the first instance.


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Crown Copyright 2009.

A licence is need to reproduce this article and has been republished for educational / informational purposes only. Article reproduced by permission of HM Revenue & Customs under the terms of a Click-Use Licence. Tax briefs are updated regularly and may be out of date at time of reading.



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Article Published/Sorted/Amended on Scopulus 2009-10-07 12:14:19 in Tax Articles

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