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First-tier Tribunal (Tax)
You are here: BAILII >> Databases >> First-tier Tribunal (Tax) >> Lebara Ltd v Revenue & Customs  UKFTT 67 (TC) (14 October 2010)
Cite as:  SFTD 260,  STI 676,  UKFTT 67 (TC)
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 UKFTT 67 (TC)
Appeal number: LON /2008/1346
IN THE FIRST-TIER TRIBUNAL
BETWEEN LEBARA LTD Appellant
- and -
TRIBUNAL: SIR STEPHEN OLIVER QC
IT IS DIRECTED that the matters set out in the Schedule to this Order be referred to the Court of Justice for a preliminary ruling:
© CROWN COPYRIGHT 2010
IN THE FIRST TIER TRIBUNAL LON/2008/1346
HER MAJESTY'S REVENUE AND CUSTOMS
SCHEDULE TO ORDER FOR REFERENCE TO THE COURT OF JUSTICE OF THE EUROPEAN UNION
(i) whether the phonecards give rise to two separate supplies for consideration by Trader A, one upon sale of the card by Trader A to Trader B and one upon use of the card by the End User;
(ii) (ii) whether the provision of telecommunications services to the End User is a taxable supply, for VAT purposes, for which the place of supply is in Member State A; and, if so,
(iii) (iii) whether Member State A can or should charge VAT on the provision of telecommunications services to the End User, when VAT is payable in Member State B on the sale of the card to Trader B under the reverse charge mechanism.
SUMMARY OF THE RELEVANT FACTS
a. The phonecards were plastic and about the same size and shape as a credit card.
b. The front of the phonecard bore a brand name which in most cases was selected by the Distributor and a face value expressed in the currency of the Distributor's Member State (usually Euros).
c. The front of the phonecard might also (but did not always) bear a slogan (such as "call the world") and/or an indication of a country or countries outside the EU to which a call might be made.
d. The reverse of the phonecard set out how the phonecard was to be used and one or more local access numbers to use in order to make an international telephone call. The phonecards could be used to telephone anywhere outside Europe.
e. The reverse of the phonecard also bore a serial number unique to the phonecard and a panel containing a PIN number. The PIN number was concealed. When the phonecard was acquired by an End User, the End User scratched off the coating covering the panel in order to reveal the PIN number.
f. The reverse of the phonecard also bore a customer service number which the End User could contact in case of any problem with the phonecard.
phonecard. Any unused credit on the phonecard at the end of the period of validity of the card would not be reimbursed to the End User.
THE DISPUTE BETWEEN LEBARA AND HMRC
THE QUESTIONS REFERRED
In circumstances such as those of the present case:
User in Member State B, and the End User then uses the phonecard to make telephone calls?