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18 November 2014
Issue: 4478 / Categories: Forum & Feedback , VAT

Calculating the VAT implications of an EU supply of financial advice

I act for a company that provides investment advice and intermediary services to expatriate Britons in warmer climes. There is (for example) a Spanish agent who actually meets the clients and helps them to fill in the paperwork.

This person is self-employed but works for the UK company only. Suppose that the client makes an investment that leads to income of £40 000 for the UK company.

After the retail distribution review I think this ought to be a fee but they still seem to receive it from the insurance company. For VAT it is exempt as is the £22 000 they remit to the Spanish agent.

My question is how this affects the UK company’s partial exemption calculation – the “T over T plus E” calculation in the VAT Regulations SI 1995/2518 reg 101.

As I understand it if the tied agent...

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