United Kingdom Tax Tribunal Clarifies VAT Exemption for Intermediary Services

The United Kingdom First-Tier Tax Tribunal June 5 issued a judgment in Case No. TC09543, clarifying the VAT exemption rules for intermediary services. The taxpayer, an online service provider, offered lead generation services that referred potential clients to independent financial advisors (IFAs) in exchange for a fee. The taxpayer claimed a VAT exemption for the fees and requested a refund for overpaid VAT. HM Revenue and Customs (HMRC) denied the VAT refund on the grounds that the services were subject to VAT and the taxpayer appealed. On appeal, the Tax Tribunal found that: 1) the taxpayer wasn’t a mere conduit ...