First-tier tribunal decision in Virgin Media Ltd
The First-tier Tribunal has held in the Virgin Media
Ltd case ([2020] UKFTT 0030 (TC)) that a supplemental monthly
payment handling charge was not payment for a separate exempt
supply of payment handling services. Even though the charge was
incurred as the customers buying media services elected not to pay
by direct debit, the payment is part of the single standard-rated
supply of media services.
In this case, customers who bought media services that were
provided by Virgin Media Ltd (VML) contracted also with Virgin
Media Payments Ltd (VMPL) for the payments. Invoices issued by VMPL
included the payment handling charges where applicable.
