New lower European regulatory price caps will be force from 1st July 2014, so what will Toggle's new GBP prices be? The price caps are specified in EUR without VAT in Articles 8(2), 10(2) and 13(2) of
Regulation (EU) No 31/2012, and in order to convert the price caps to GBP, the EUR/GBP exchange rate is calculated in accordance with Article 1(7) by taking the average of the exchange rates published in the Official Journal of the European Union on
1st March 2014,
1st April 2014 and
1st May 2014, which is 0.82581. Consequently the price caps will be £0.1569/min for outgoing calls, £0.0495 for outgoing SMS and £0.1652/MB for data. UK VAT of 20% is then added when roaming inside the
EU VAT area, but not when roaming in parts of the
European Economic Area that are outside the
EU VAT area, specifically Iceland, Liechtenstein, Norway, Gibraltar, the Åland Islands, French Guiana, Guadeloupe, Martinique, Réunion, the Canary Islands, Ceuta and Melilla, in accordance with
Article 19 of the Value Added Tax (Place of Supply of Services) Order 1992. The United Kingdom opted to exempt non-EU VAT area roaming from UK VAT under Article 9(3)(a) of
Council Directive 77/388 ("the Sixth VAT Directive") so that it could impose UK VAT on services used in the UK but billed outside the UK (e.g. US-based services marketed to UK residents).
In view of the new price caps and the existing VAT rules, please could the Toggle representative confirm the new prices from 1st July 2014?