FTT Silverdoor Ltd – Disclosed agent for accommodation providers – 2.95% fee charged for customers paying by corporate card does not fall within the financial services exemption

This case provides useful reminder of the card handling exemption conditions and the meaning of acting as an intermediary. The exemption is relatively narrow and as the FTT commented, “it is clear from case law that the scope of exemption is not confined to banks and other financial institutions, but we also consider that it is clear from case law that the taxpayer must execute the order for the transfer of funds: it is not enough that it instruct others to do so”. In practice this makes it difficult for other suppliers to fall within the exemption.

Source KPMG

---

---