VAT and Financial Services: Fourth Edition (VAT Guides)

VAT and Financial Services takes the reader through the relevant legislation and case law, the legal concepts such as time and place of supply, the distinction between goods and services, what is taxable, and the interaction of these elements; examines the consequences of outsourcing (through a detailed study of 10 significant cases); looks at the key issues facing financial services and insurance; and then discusses the VAT cost sharing exemption. Since the third edition, there have been significant developments, including (most obviously) Brexit. Appendices include: contracts of insurance; Lloyd’s VAT arrangements; HMRC ABI partial exemption guidance for the insurance sector; TOGC legal extracts; and the VAT territory of the EU. Finance directors and finance controllers in the financial services and insurance sectors and at those who advise these sectors should all find the book helpful. Contents About the author Acknowledgements Contents Tables of authorities 1. Introduction 1.1. Introduction to the first edition, September 2012 1.2. Introduction to the second edition, June 2015 1.3. Introduction to the third edition, March 2017 1.4. Introduction to the fourth edition, June 2022 2. Financial Services 2.1. Introduction 2.2. Money and money-related services 2.3. Securities 2.4. Investment funds and wrappers 2.5. Derivatives 2.6. Intermediary services 2.7. Supplies relating to the provision of credit 2.8. Debts and related services 2.9. Islamic finance 2.10. Standard rated services 2.11. Investment gold 3. Insurance 3.1. Introduction 3.2. General (non-life) insurance 3.3. Life assurance 3.4. Friendly Societies 3.6. Lloyd’s 3.7. Insurance claims 3.8. Insurers in ‘run off’ 3.9. Other types of insurance 3.10. Insurance Premium Tax (IPT) 4. Outsourcing 4.1. Introduction 4.2. Sparekassernes Datacenter (SDC) v Skatteministeriet (Case C- 2/95) [1997] STC 932 4.3. C&E Commrs v Civil Service Motoring Association [1998] STC 111 4.4. C&E Commrs v CSC Financial Services Limited (formerly Continuum (Europe) Limited) (Case C–235/00) [2002] STC 57 4.5. C & E Commrs v FDR Ltd [2000] STC 672 4.6. C & E Commrs v Electronic Data Systems Ltd [2003] STC 688 4.7. Century Life plc v C&E Commrs [2000] STC 276 4.8. Försäkringsaktiebolaget Skandia (Case C – 240/99) STC 754 4.9. C & V (Advice Line) Services Ltd v C & E Comrs (2001) (17310) 4.10. Staatssecretaris van Financiën v Arthur Andersen & Co Accountants cs (Case C-472/03) [2005] STC 508 4.11. JCM Beheer BV v Staatssecretaris van Financien (Case C-124/07) [2008] STC 3360 4.12. Aspiro (formerly BRE Ubezpieczenia Sp. z o.o.) v Minister Finansów (Case C – 40/15) 5. Input Tax and VAT recovery 5.1. Introduction 5.2. Definition of input tax 5.3. Who can recover input tax 5.4. Blocked input tax 5.5. Purchases from overseas suppliers 5.6. Partial exemption 5.7. Capital goods scheme 5.8. Recovery of VAT incurred in the EU 6. Legislation, Case Law and Appeals 6.1. Introduction 6.2. EU legislation 6.3. Primacy of EU Directives over national legislation and European Union (Withdrawal) Act 2018 6.4. UK legislation 6.5. Appeals 6.6. Legislation relevant to the financial services and insurance sectors 7. VAT supply and liabilities 7.1. Meaning of supply 7.2. Supply of goods 7.3. Supply of services 7.4. Supply of neither goods nor services 7.5. Place of supply 7.6. Time of supply 7.7. Taxable supplies 7.8. Exempt supplies 7.9. Outside the scope supplies 7.10. Reverse charge Appendices Appendix A – Contracts of Insurance Appendix B – Lloyd’s VAT Arrangements Appendix C – Extract from ‘HMRC ABI Partial Exemption Guidance for the Insurance Sector’ Appendix D – Transfers of business as a Going Concern – Legal Extracts Appendix E – EU member states as at 1 January 2021 Appendix F – Terminal markets listed in VAT (Terminal Markets) Order 1973