Telecommunications, broadcasting and electronic (TBE) services - new rules (2015)

What is meant by 'taking part in the supply' to the consumer?

All features of the supply of TBE services need to be taken into account to assess whether you are ‘taking part in the supply’. There are various indicators which may be evidence of a taxable person taking part in the supply including the following:

  • owning or managing the technical platform over which the services are delivered
  • being responsible for the actual delivery
  • being responsible for collecting payment, unless the only involvement of the taxable person is the processing of the payment
  • controlling or exerting influence over the pricing
  • being the one legally required to issue a Value-Added Tax (VAT) invoice, receipt or bill to the end user in respect of the supply
  • providing customer care or support in relation to queries about or problems with the service itself
  • exerting control or influence over the presentation and format of the virtual market place (such as app stores or websites) such that the brand and identity of the taxable person are significantly more prominent than those of other persons involved in the supply
  • having legal obligations or liabilities in relation to the service provided
  • owning the customer data related to the supply in question
  • being in a position to credit a sale without the supplier’s permission or prior approval, in cases where the supply was not properly received.

It should be borne in mind that not all taxable persons involved in transactions in the supply chain, are taking part in the supply. A payment service provider who only provides a payment processing service is not regarded as taking part in the supply. Similarly, an internet provider who only makes the internet network available for the carrying of content and, or collection of payment (via Wi-Fi, cable, satellite, other) would not be regarded as taking part in the supply of an electronic service.

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