Value Added Tax Act 1994 section 9E

Telecommunication services

Section 9E determines the place of supply for telecommunication services provided to a relevant business person, using an "effective use and enjoyment" test to override the default place of supply rules.

• Telecommunication services cover the transmission, emission or reception of signals, writing, images, sounds or information by wire, radio, optical or other electromagnetic systems, including the transfer of capacity rights and access to global information networks.
• If a supply of telecommunication services to a relevant business person would normally be treated as made in the UK, but the services are actually used and enjoyed outside the UK, the supply is treated as made outside the UK to that extent.
• Conversely, if such a supply would normally be treated as made outside the UK, but the services are actually used and enjoyed in the UK, the supply is treated as made in the UK to that extent.
• The rule applies proportionally — where services are partly used in the UK and partly abroad, the place of supply is split accordingly based on the extent of actual use and enjoyment in each location.