The First-tier Tribunal held that the online services provided by “lead generators” to a payday loan provider qualified for the VAT exemption for the negotiation of credit in a broadly taxpayer-friendly decision. Your decision additionally supports comparable conclusions in the context of online introduction solutions for insurance coverage items.
Companies of monetary solutions and insurance coverage items which have actually check this link right here now incurred VAT on payments built to therefore lead generators should think about the plans very very very carefully to evaluate whether this choice offers a foundation for recovering the VAT and, if appropriate, should make any relevant reclaims of this VAT.
More generally speaking, this choice offers guidance that is useful respect of this facets that can help see whether a site is at the “negotiation of credit” exemption in other circumstances. Clarification regarding the range associated with VAT financial services intermediaries exemption is welcome, provided the constant evolution of solutions in this sector and also the ensuing uncertainty as from what is exempt.
VAT intermediaries exemptions for settlement of insurance or credit
British legislation provides that the monetary solutions intermediary exemption relates to “the supply of intermediary solutions pertaining to the granting of any credit (among other activities), whether or perhaps not such deal is finally determined, by way of a person acting within an intermediary capacity”.
Intermediary services are thought as “the joining together of individuals that are or can be looking for monetary services with people who offer such solutions, with a view to your supply of monetary solutions including preparatory work but excluding general market trends, advertising, marketing or comparable task, or even the collection, collation and supply of data associated with such tasks.”