VAT on EU Roaming charges

From 1st January 2021, as a result of the UK leaving the European Union, the way that VAT is charged has changed. Under HMRC's Use and enjoyment rules any telecoms services consumed in the EU by businesses are now subject to VAT at 0% rather than the usual 20%.


For wholesale resellers and distributors this means that if you offer things like Mobile services to other businesses, you will need to configure your destinations to work accordingly. We have introduced configuration options on Destinations which can make them VAT exempt for this purpose.


If you offer mobile services such as calls, data or SMS,, you will need to isolate the destinations you use for EU Roaming charges. This is so you can utilise a new field we've implemented on the Add Destination and Edit Destination screens called Is Tax Exempt. If you are unsure which destinations are covered under EU roaming then speak to your supplier/provider.



By checking the Is Tax Exempt field, you specify that the charge codes linked to the destination should not have VAT applied to them.


When an invoice is generated with VAT exempt Voice, Data or SMS charges on it, you will note your invoice will feature a line for Voice, Data & SMS charges with VAT applied to them and another for Voice, Data & SMS charges that are exempt from VAT.


In the same way you can change the wording of the default Voice, Data & SMS charges line item, you can also do the same for the VAT-exempt version by heading to Settings > Voice, Data & SMS and amending the Charge Description for Tax Exempt destinations field.


Updated on 2021-01-14 10:22:31 +0000

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