VAT Exemption for Insurance Intermediaries Does Not Cover Asset Management Services, Tribunal Rules

• The Tax Appeals Tribunal ruled that VAT exemption for insurance intermediaries does not apply to asset management services, which are subject to VAT at 16%.
• The case clarified that only insurance agency and brokerage services are VAT exempt, not ancillary financial services like asset management, investment advisory, or pension product sales.
• The Appellant argued that VAT assessments were erroneous, his VAT registration was compelled by an unconstitutional law, and his commission income was below the VAT threshold.
• The Tribunal upheld KRA’s position, confirming VAT liability on asset management commissions despite the Appellant’s objections and deregistration request.

Source: assets.kpmg.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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