If you’re a small business, are not VAT registered and incur international roaming charges outside the EU then watch out, as Phillip Hammond in his latest budget announced that from 1 August 2017 VAT would be added to bills – that means a 20% increase in costs.
Currently VAT is added to EU roaming charges (capped as part of an EU wide agreement, and set to be reduced further in the future – see here). However, charges to non-EU countries like the US and China have been exempt from VAT – until now. It’s therefore important that you’re aware of your potential usage in the future, especially if you go on holiday to the States in August. It’s always best to plan these things before you travel, as you can purchase fixed price plans from all of the networks which means you can budget for your trip and not have a nasty surprise in your bill when you get back home!
With Brexit looming, there will continue to be uncertainty in roaming charges, as the UK will quite possibly withdraw from any EU agreements (although nobody really knows what is going to happen, including members of the government who are being paid to know!) At Simpatico, we help advise businesses on their mobile usage, in the UK and abroad, to ensure you get the best deal tailored to your business’s needs. Give us a call if you’d like some advice!