Lebara Ltd v Revenue & Customs [2011] UKFTT 67 (TC) (14 October 2010)

Lebara Ltd v Revenue & Customs [2011] UKFTT 67 (TC) (14 October 2010)

The Tribunal determined that contested matters of EU law regarding the VAT treatment of cross-border phonecard sales and redemptions required a preliminary ruling from the Court of Justice of the European Union, specifically on whether such transactions constitute one or two supplies for VAT purposes and how VAT should be applied through the supply chain to avoid double taxation or non-taxation.

Citation
[2011] UKFTT 67
Parties
Appellant: Lebara Ltd; Respondents: Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
14 October 2010
Procedural Posture
Tax Appeal / Reference for Preliminary Ruling to the Court of Justice of the European Union
Outcome
Reference for preliminary ruling to the Court of Justice of the European Union
Legal Topics
Value Added Tax (vat), Telecommunications Services, Cross Border Supply, Face Value Vouchers, Double Taxation, Reverse Charge Mechanism
Tax Law European Union Law Value Added Tax (vat) Telecommunications Services Cross Border Supply Face Value Vouchers Double Taxation Reverse Charge Mechanism

Case Brief

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Parties

Lebara Ltd

Appellant

Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Reference for Preliminary Ruling to the Court of Justice of the European Union

Legal Issues

  1. 1 Whether the sale and redemption of phonecards constitute one or two supplies for VAT purposes under Article 2(1) of the Sixth VAT Directive
  2. 2 Whether the provision of telecommunications services to the End User is a taxable supply for which the place of supply is in the Member State of the supplier
  3. 3 Whether Member State A can or should charge VAT on the provision of telecommunications services to the End User when VAT is payable in Member State B on the sale of the card under the reverse charge mechanism

Ratio Decidendi

The Tribunal determined that contested matters of EU law regarding the VAT treatment of cross-border phonecard sales and redemptions required a preliminary ruling from the Court of Justice of the European Union, specifically on whether such transactions constitute one or two supplies for VAT purposes and how VAT should be applied through the supply chain to avoid double taxation or non-taxation.

Court Disposition

Reference for preliminary ruling to the Court of Justice of the European Union

Orders

  • The questions set out in the Schedule are referred to the Court of Justice for a preliminary ruling.