SRI Strengthens VAT Refund Mechanisms for Priority Groups: July 23, 2024 Taxes

Exercise caution when classifying remuneration of financial intermediaries for VAT purposes
Complainant acted as an asset manager receiving brokerage fees and monthly management fee
Dispute over whether brokerage fees are for tax-exempt brokerage service or taxable asset management service
Decision of Federal Administrative Court based on categorization of underlying transaction brokered
Complainant argues brokerage fees should be exempt fees for trading in securities or ancillary service to brokerage service
Complainant claims to provide brokerage services in accordance with administrative practice
Definition of brokerage in MBI 14 as intermediary activity working towards conclusion of contract in money and capital transactions
FTA considered appellant’s performance as taxable asset management based on MBI 14 section 5.10.3

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.