Telephone cards sales

Telephone cards distribution business




  • Explanation of Place of Supply Rules regarding telecommunications services.


  • Phone cards – goods or services?  Impacts physical delivery to UK establishment.


  • VAT rules for telephone cards,  face value cards /vouchers, pre-paid, post-paid cards, promotional schemes etc,


  • VAT rules at distributor level & retail level – taxed when sold or taxed when used.


  • “Reverse charge” VAT rules for phone cards.


  • VAT registration process – what HMRC will ask and what the business will have to provide.


  • VAT presence/nexus in terms of physical UK office and internet selling.


  • Comparative study of offshore jurisdictions for internet business. 


  • How to track who is using your service for internet sales?  What the VAT law requires you to do?


  • Electronic invoicing and record keeping in Europe (on-line sales) – your billing records will be audited regularly.  Do you wish to avoid expensive financial penalties for non-compliance?


  • VAT rules regarding selling from physical location in UK. 


  • What is the difference between “business” establishment and “fixed establishment – concepts which are critical to application of VAT to your sales.


  • Preparation of VAT returns, declarations and payment of VAT.


  • Reclaiming VAT suffered on inputs & business expenses to reduce your VAT bill.


  • VAT rules regarding buying or procurement from main suppliers.


Direct tax (corporate income tax)

  • Strategy for a suitable onshore-offshore structure for corporate tax for online sales and physical distribution.


  • Impact of transfer pricing regulations.


  • Impact of permanent establishment rules  (different from the VAT establishment rules).


  • Use of tax treaties.


  • Impact of UK Controlled Foreign Companies legislation.


  • Procedure for UK corporate tax returns for the UK company.


  • UK company or branch office?

Please contact us for further details.