Domestic reverse charge ― mobile phones and computer chips

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides an overview of the reverse charge mechanism that was introduced in the UK in respect of certain goods. This note should be read in conjunction with the Domestic reverse charge ― overview and Domestic reverse charge ― accounting requirements guidance notes.

What goods are included in the reverse charge?

For the purposes of the reverse charge, the definition of a mobile phone takes its everyday meaning in the UK, and this generally means any handset that is capable of being used as a mobile phone (ie to make and receive calls over a cellular network).

The following are deemed to be specified goods under these provisions:

•
handsets that have a mobile phone function (ie the transmitting and receiving of spoken messages), whether or not they have any other function ― it therefore includes other communication devices, such as Blackberrys and iPhones. With the introduction of smart phones and mobile phone / tablet hybrid devices (‘phablets’), HMRC has stated that it would also see a device as being

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