VAT exemption for online insurance agents? Not so simples!
HMRC has lost an appeal against Trader Media Group and Insurancewide.com over the issue of VAT exemption for online insurance introductory services.
The Court of Appeal was unanimous in confirming that the services do qualify for VAT exemption.
Both websites introduce potential customers to insurers with a view to them purchasing an insurance policy and both receive commissions which are payable when a customer makes a purchase.