Telecoms services can often be bundled together with other services in a single contract. Thus the “package of services” may consist of basically separate services which are dealt with in the same contract or “inter-connected services” which are technically related.
Regarding “bundled services” the issue is whether the different strands or service components should be differentiated or treated together under the same rules.
“Inter-connected” services may consist of basic services such as operation, administration and maintenance or special services such as network management services or co-location. Where such services are considered ancillary to a telecom service their VAT treatment follows the telecom service with which they are supplied. If they are considered separate services then different place of supply rules might apply.
Therefore, the VAT treatment of “bundled” or “inter-connected” services can be complex and proper advice is required.