car insurance vat rate
HM Revenue and Customs (HMRC), the United Kingdom's tax authority, has reported that pay claims for excess value added tax (VAT) on insurance services Introductory pending a decision by the Court of Appeal in the / case Insurancewide Trader Media Group.
However, HMRC said in a brief Revenue and Customs on 21 September that will not pay VAT refunds on insurance services introduction introductory and services unrelated to other financial contracts, even where the facts were very similar to Insurancewide / Trader Media group information.
Last May, the Court Superior ruled that (Insurancewide and Trader Media Group TMG) providing online services were exempt from VAT introduction. The facts in each case are slightly different; Insurancewide is a comparison site to provide "click through" services to the insurance company or agent Web sites, while the TMG has, " click through "services of auto auction car dealer companion site to a third broker website brand. They are paid by the Commission on the success of such systems.
In court, Insurancewide lost its appeal as having been found not as an insurance agent at any time, and called the Supreme Court. TMG, however, won his appeal at the Court considered that its services are an insurance intermediary services; HMRC appealed the High Court decision. Given the similarities in both cases, the Supreme Court agreed to hear the appeals together.
The High Court found that Insurancewide and TMG were insurance intermediaries for the purposes of VAT exemption, and that an act of introduction, without greater participation in the insurance brokerage contract qualify for exemption as insurance related services.
HMRC is of the view that the commissions paid to TMG Insurancewide and are not exempt from the basis that there is no significant difference between the services they provide and the services advertising. Income from the sale of advertising in the UK is usually a "qualifying standard of" commercial activity and therefore subject to VAT at the standard rate, currently 15%.
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Jaiya
Article Source: ArticlesBase.com – HMRC Outlines VAT Position On Insurance Introductory Services
