Lycamobile UK Limited v The Commissioners for HMRC

Lycamobile UK Limited v The Commissioners for HMRC

VAT is chargeable on the supply of plan bundles at the time of sale and by reference to the whole consideration paid, regardless of subsequent usage. For plan bundles sold prior to 1 November 2017, a repayment of VAT should be made to the extent allowances are effectively used and enjoyed in a country outside the EU. Plan bundles are not vouchers for VAT purposes under either pre-2019 or post-2019 rules.

Parties
Appellant: Lycamobile UK Limited; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
23 July 2024
Procedural Posture
VAT Appeal / Decision in Principle
Outcome
Appeals remitted to parties to agree quantum and best judgment; permission to return for further hearing if agreement not reached.
Legal Topics
VAT Liability, Telecommunication Services, Vouchers, Effective Use and Enjoyment, Composite Supplies
Tax Law VAT VAT Liability Telecommunication Services Vouchers Effective Use and Enjoyment Composite Supplies

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Parties

Lycamobile UK Limited

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

VAT Appeal / Decision in Principle

Legal Issues

  1. 1 Whether VAT is chargeable on the supply of plan bundles at the time of sale or only when allowances are used
  2. 2 Whether plan bundles constitute vouchers for VAT purposes under pre-2019 and post-2019 legislation

Ratio Decidendi

VAT is chargeable on the supply of plan bundles at the time of sale and by reference to the whole consideration paid, regardless of subsequent usage. For plan bundles sold prior to 1 November 2017, a repayment of VAT should be made to the extent allowances are effectively used and enjoyed in a country outside the EU. Plan bundles are not vouchers for VAT purposes under either pre-2019 or post-2019 rules.

Court Disposition

Appeals remitted to parties to agree quantum and best judgment; permission to return for further hearing if agreement not reached.

Orders

  • VAT chargeable on supply of plan bundles at time of sale and on full consideration.
  • For plan bundles sold prior to 1 November 2017, VAT repayment to extent allowances used and enjoyed outside EU.