Dear Clients, 
 

From February 1, 2016, VAT-registered persons acquiring wholesale supplies of electronic communication services will be required to account for value-added tax (VAT) under a reverse charge.
 

The reverse charge mechanism requires that the customer account for the VAT rather than the supplier. Specifically, the reverse charge will apply to the services of routing telephone calls and associated data (text, images) over landlines, mobile networks, or the internet. It will not apply to non-wholesale supplies or to businesses not registered or not liable to be registered for VAT.
 

An anti-fraud measure, the reverse charge is intended to remove the opportunity for fraudsters to charge VAT and disappear with the revenue before paying it over to the Exchequer in Missing Trader Intra-Community fraud.
 

Should you require any further clarification, please do not hesitate to contact us at:
info@cardwell-capital.com

Kind Regards

Cardwell Advisory Desk