KPMG comment on 15% VAT rate extension for telcos
Following the news that HMRC has extended the 15 percent VAT rate for New Years Eve retailers, including the telecommunications sector, to 6am on 1 January 2010, Amanda Tickel, Telecom Partner at KPMG commented:
"The mobile sector in particular will be relieved that HMRC have responded to retailers' calls to avoid complex billing system changes during one of their most frantic trading points of the year.
"The volume of New Years Eve texts and calls make it one of the most intense times for mobile traffic. Having to charge one VAT rate for calls made at midnight and a different rate for those at one second past 12 for this scale of network traffic would be a large and costly burden.
"In responding to their calls to delay this change even for a few hours, HMRC have recognised the considerable effort required by all retailers to implement a VAT rate change, because it impacts on point of sale material, pricing and EPOS systems."
06 November 2009
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For further information please contact:
Claire Le Masurier, KPMG Corporate Communications
Tel: 020 7694 8639
Mobile: 07795 074 360
Email: Claire.lemasurier@kpmg.co.uk
About KPMG:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with 11,500 partners and staff. The UK firm recorded a turnover of €2.2 billion in the year ended September 2008. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 148 countries and have more than 113,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. KPMG International provides no client services.
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