§ Mr. HawkinsTo ask the Chancellor of the Exchequer (I) on what basis VAT is calculated for(a) UK-based and (b) non-UK-based internet service providers; [32148]
what discussions he has had with (a) UK-based internet service providers and (b) Customs and Excise about the appropriate VAT charges for flat-rate unmetered internet access charges on non-UK-based ISPs; [32149]
what steps he is taking to ensure non-UK-based internet service providers account for value added tax on the same basis as UK-based ISPs. [32147]
§ Mr. BoatengThis is a complex area of EC VAT law, centring on the interpretation and application of the rules that govern the 'place of taxation' of services. The Government currently have the treatment of internet access packages under review, and have held discussions with a range of interested bodies. The Government are also negotiating for relevant changes to be made to EC VAT law in order to provide lasting clarity and certainty in this area.