Matchmaking services were not consultancy

The taxpayer provided an exclusive matchmaking service to clients in many countries. The owners of the business argued that no VAT should be charged on fees to non-EU customers because their offering qualified as ‘consultancy services’ and ‘the provision of information’ under VATA 1994 Sch 4A para 16(d) which enacted art 59(c) of the Principal VAT Directive.

One of the partners carried out much of the work. The taxpayer argued that she gave advice based on a high level of expertise – in effect a consultancy service. At the end of an interview process when the client’s needs had been established they would be given contact details for potential matches - the provision of information.

HMRC argued that the services were not consultancy. It also highlighted the involvement of the support staff of the business rather than the partner.

The First-tier Tribunal found against the taxpayer but the...