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Value Added Tax (Section 55A) (Specified Services and Excepted Supplies) Order 2016

As you may be aware on 11 January 2016, the government laid legislation, in the form of a statutory instrument the Value Added Tax (Section 55A) (Specified Services and Excepted Supplies) Order 2016, to introduce a reverse charge accounting mechanism (domestic reverse charge) for wholesale supplies of telecommunications services in the UK.  This measure was in response to the threat of missing trader intra-community (MITC) fraud in those supplies. The reverse charge took effect on 1 February 2016 and applies to the wholesale buying and selling of telecommunications services in the UK, subject to certain exceptions.

Voiceflex continues its investment and effort to detect and stop fraud, and supports all efforts to prevent fraud in our industry. We are aware and working through the legislative and the definition of the services to which it applies to ensure that the VAT is correct for each service provided by Voiceflex to the Channel.  Following confirmation of the services which are within the scope of the legislation, we will make the necessary amendments to our billing system to be able to provide invoices which are compliant.

Although the legislation took effect on 1 February 2016, HMRC recognises the timetable may be challenging to put into effect. Please note, our invoices is for that reason unchanged and the previous VAT treatment is in place for the immediate future. We will let you know when we have completed the necessary changes to our billing system and invoices.

Should you have any questions or concerns please do not hesitate to contact your Account Manager. 


For more information on the legislation please visit: https://www.gov.uk/government/publications/revenue-and-customs-brief-1-2016-vat-domestic-reverse-charge-for-businesses-wholesaling-telecommunications-services/revenue-and-customs-brief-1-2016-vat-domestic-reverse-charge-for-businesses-wholesaling-telecommunications-services

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