Policy paper

Draft legislation: VAT use and enjoyment for telecommunication services

This draft legislation will remove the VAT use and enjoyment provision for business to consumer (B2C) telecommunication services.



At Spring Budget 2017 the government announced that it would remove the use and enjoyment provisions for B2C telecommunication services. This means that UK VAT will now be charged on all telecommunication services used outside the EU by UK consumers. This change will bring the UK rules in line with the international approach agreed at the Organisation for Economic Co-operation and Development.

This consultation seeks comments on the draft statutory instrument and explanatory memorandum to remove B2C telecommunications from the use and enjoyment provisions. The aim is to ensure the legislation works as intended.

This technical consultation will be of interest to businesses providing telecommunication services to consumers that visit countries outside the EU.

Comments about this legislation should be sent by email to Kerry Smith by 19 May 2017.

Published 21 April 2017