- HMRC’s RCB 6 (2025) addresses VAT input tax recovery for insurance intermediary services supplied outside the UK, following the Hastings Insurance Services Ltd tribunal decision.
- The tribunal found that UK rules limiting VAT recovery to non-UK insured parties were incompatible with EU law, allowing intermediaries to rely on the EU Principal VAT Directive for input tax recovery before 1 January 2024.
- HMRC now accepts that input tax can be recovered for services supplied before 1 January 2024, regardless of the insured party’s location.
- From 1 January 2024, due to the Retained EU Law (Revocation and Reform) Act 2023, direct effect of EU law no longer applies, and UK legislation prevails.
- Insurance intermediaries are encouraged to review and claim any under-recovered input tax for periods before 1 January 2024.
Source: taxscape.deloitte.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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