United Kingdom Tax Tribunal Clarifies VAT Assessment for Deductions for Insurance Intermediary Services

The United Kingdom First-Tier Tax Tribunal March 3 issued a judgment in Case No. TC09444, on VAT assessment for deductions for insurance intermediary services. The taxpayer, an insurance intermediary, appealed the Tax Agency’s decision regarding its VAT liability for services to a Gibraltar insurer. The taxpayer argued that the amendment to the VAT (Input Tax) (Specified Supplies) Order 1999, was incompatible with Article 169(c) of the EU Principal VAT Directive (PVD), which allowed VAT deduction for services used in transactions where the customer was outside the EU. The Tax Agency argued that the amendment was compatible with the PVD, stating ...