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 the interpretation of EU VAT law regarding the supply and redemption of phonecards, and the risk of double taxation or non-taxation due to divergent Member State practices, required clarification from the Court of Justice of the European Union. The matter was referred for a preliminary ruling to resolve whether one or two supplies arise for VAT purposes and how VAT should be applied through the supply chain.

Citation
[2011] UKFTT 67 (TC)
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, Reverse Charge Mechanism
Tax Law European Union Law Value Added Tax (vat) Telecommunications Services Cross Border Supply Face Value Vouchers 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 double taxation or non-taxation arises due to differing Member State practices and the application of the reverse charge mechanism

Ratio Decidendi

The Tribunal determined that the interpretation of EU VAT law regarding the supply and redemption of phonecards, and the risk of double taxation or non-taxation due to divergent Member State practices, required clarification from the Court of Justice of the European Union. The matter was referred for a preliminary ruling to resolve whether one or two supplies arise for VAT purposes and how VAT should be applied through the supply chain.

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.