- Performance Leads Ltd (PLL) provided lead generation services through two websites for financial advice.
- Leads were reviewed and filtered before being passed to independent financial advisors (IFAs).
- IFAs paid a commission for leads, which could be withdrawn if not acted upon.
- Between May 2018 and February 2022, PLL accounted for VAT on leads, later claiming they were intermediary services exempt from VAT.
- PLL sought repayment of overpaid VAT, but HMRC refused the claim.
- PLL appealed, arguing its service was exempt as it connected clients and advisers for financial services.
- HMRC argued PLL provided advertising services, not qualifying for exemption.
- The FTT allowed PLL’s appeal, stating the company added value by independently assessing and matching leads.
- The FTT noted that exemption applies when a supplier is involved in preparatory work for financial services contracts.
- The decision clarifies that active involvement in preparing or filtering leads for financial services may qualify for VAT exemption.
Source: rpclegal.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.
