The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the scope of the domestic reverse charged applied in respect of wholesale electronic communication services. This note should be used in conjunction with the Domestic reverse charge ― overview and Domestic reverse charge ― accounting requirements guidance notes.
HMRC announced that the scope of the reverse charge is extended to cover supplies of wholesale telecommunication services, including satellite, in the UK with effect from 1 February 2016. The changes will impact the following types of businesses:
message hubbing providers
short messaging service (SMS) and voice aggregators
VATA 1994, ss 1(2), 55A; Value Added Tax (Section 55A) (Specified Services and Excepted Supplies) Order 2016, SI 2016/12; Revenue and Customs Brief 1 (2016); VAT notice 735, para 3.7
The changes are applicable to the wholesale buying and selling of telecommunication services in the UK. The term ‘wholesale’ will mean business-to-business supplies where the receiving business intends to resell the supply with no or negligible consumption of the supply by the businesses concerned. With respect of supplies of telecommunications services, the term ‘wholesale’ means supplies between carriers of these services within the UK, or supplies of these services to network operators for onward supply to the consumer or user of the underlying telecommunication service.
The changes impact telecommunication services which typically mean transmission or carriage services of airtime and telephony related data. The reverse charge applies to telecommunications services which enable speech communication instantly or with only a negligible delay between the transmission and the receipt of signal or the transmission of images, information, sounds or writing of any nature when given in connection with these services.
According to HMRC guidance, the following supplies are covered by the reverse charge (this list is not exhaustive):
airtime ― mobile telephony usage, including roaming agreements
voice interconnect ― the services of handling calls for other operators
Voice Over Internet Protocol (VOIP) ― charges for voice
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Arguably, the most important exemption from IHT is the married couple / civil partner exemption.There is no IHT to pay on gifts from husband to wife and vice versa, or from one civil partner to the other (referred to collectively in this note as ‘spouses’). The exemption applies to inter-spouse
The transactions in securities (TiS) legislation is anti-avoidance legislation aimed at situations where close company shareholders have engineered a disposal of shares to obtain a beneficial capital gains tax (CGT) rate, ie avoid income tax, on specified transactions.The targeted anti-avoidance
Working rule agreements are used in the construction industry and similar areas. They are national agreements made between trade unions and employers across the country, setting out the terms and conditions that apply to particular categories of hourly paid manual workers. The workers concerned are
If the self assessment tax return shows that a repayment is due, the taxpayer can claim a repayment or leave it as a credit on their statement of account.The quickest and safest method is for HMRC to make the payment direct to the taxpayer’s bank or building society account and so they are asked to