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Network Fees Paid by Foreign Companies Taxable, EU Court Rules

April 15, 2021, 11:19 AM

Fees paid by non-European Union telecom providers to access networks in EU countries are subject to value-added-tax, the bloc’s top court said Thursday.

In fact, not levying VAT could amount to non-taxation of mobile roaming services delivered in the EU, the EU Court of Justice said in a case referred from Austria.

Austria’s Federal Finance Court had asked the ECJ to clarify a point of EU law in a dispute between the Austrian tax authorities and SK Telecom of South Korea over VAT charged on payments made by SK Telecom to the operator that provided its Austrian roaming services. ...