VAT on mobile phone top-ups

FozzaFozza New MemberPosts: 8Registered
Good afternoon, hope this isn't a stupid question!

I recently advised a family member that you could claim VAT back on mobile top-ups (i just assumed you could, as monthly contracts have VAT on them). Luckily this hasn't happened at work, everyone I deal with have monthly contracts. However, the client I am working on at the moment (who isn't registered for VAT) has some top-up receipts from Tesco which state the VAT rate as being 0%.

I couldn't find anything specific on HMRC's website about this, and when I googled it, I got a few posts in various forums that said you could claim the VAT back.

Has anyone dealt with this before, or could you point me in the right direction of some "official" guidance?

Many thanks

Fozza.
lavishlavender

Comments

  • PGMPGM Font Of All Knowledge Posts: 1,954Registered
    Could it be that buying the £10 top up card you're just changing cash to a "credit token". And only when you spend that with the top up to your phone, you're charged vat?

    Just a guess!

    Or is the vat charged when you make the call / text etc....
  • FozzaFozza New Member Posts: 8Registered
    Thanks for your reply, that sounds a plausible explanation to me!

    Cheers!
  • MonsoonMonsoon Font Of All Knowledge Posts: 4,071FMAAT, AAT Licensed Accountant
    It's weird but yeah, I've never seen a VAT receipt for topup - yet a monthly bill has a VAT element.

    Not ever seen a PAYG provider provide VAT receipts either.
  • NeilHNeilH Trusted Regular Posts: 547Registered
    Hi

    Have a look at http://www.ukbusinessforums.co.uk/forums/showthread.php?t=118657

    Its a bit of an old thread, but gives you some general pointers

    Neil
  • NashtyNashty Just Joined Posts: 1Registered
    Hi According to Hm Revenue and customs helpline. (0300 2003700) all payments for mobile phone top ups include vat. Thye are a taxable supply.
    Nashty
    Fozza wrote: »
    Good afternoon, hope this isn't a stupid ques

    I recently advised a family member that you could claim VAT back on mobile top-ups (i just assumed you could, as monthly contracts have VAT on them). Luckily this hasn't happened at work, everyone I deal with have monthly contracts. However, the client I am working on at the moment (who isn't registered for VAT) has some top-up receipts from Tesco which state the VAT rate as being 0%.

    I couldn't find anything specific on HMRC's website about this, and when I googled it, I got a few posts in various forums that said you could claim the VAT back.

    Has anyone dealt with this before, or could you point me in the right direction of some "official" guidance?

    Many thanks

    Fozza.
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