UK Court Expands VAT Exemption for Insurance Intermediaries Involving Essential Technology Components

• The Court of Appeal ruled that the VAT exemption for insurance intermediary services includes the provision and fitting of a “black box” device for motor insurance.
• The decision affects insurance policies requiring a physical device, impacting input tax recovery for intermediaries.
• Insurance intermediaries may face extra costs and need to adjust their VAT position.
• The case involved ISL, an intermediary selling telematics car insurance to young drivers, requiring a “black box” device.
• The exemption applies to services related to insurance transactions provided by brokers or agents acting in an intermediary capacity.
• The services of providing and fitting the device were deemed integral to the insurance product, even if installed after the policy was entered into.

Source: jdsupra.com

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.

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