Loan administration services do not amount to VAT exempt supplies

In Target Group Ltd v. HRMC, the Upper Tribunal found that loan account administration services provided by Target (a company) and supplied to a bank were not exempt from VAT. The decision reflects HMRC’s arguments that Target was providing taxable administration services and underlines that the financial services VAT exemptions must be construed strictly when administrative services are in point.

Source: bakerxchange.com

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