UK VAT is applied to mobile phone use by UK residents when in the EU, but not when outside the EU as a result of the current ‘use and enjoyment’ rules.
The ‘use and enjoyment’ provisions for mobile phone services provided to consumers will be removed. The measure will ensure that UK VAT will be charged on all UK residents’ mobile phone use, irrespective of where that use is enjoyed.
This change will be implemented from 1 August 2017.
This change will affect both telecoms suppliers to UK residents and UK residents who use telecommunications services overseas.