Mark Watterson and Gary Barnett (Simmons & Simmons) review the recent First-tier Tribunal decision in Dollar Financial on the electronic introductions of customers to a payday lender.
The VAT finance exemptions predate and cannot possibly have contemplated the proliferation of the internet and the increasing prevalence of technology in the delivery of financial services. Inevitably therefore difficulties arise in applying these exemptions to today’s financial services industry.
In particular when the word ‘negotiation’ was included in article 13(B)(d) of the Sixth Council Directive few would have envisaged the extent to which the internet would facilitate bringing together financial service providers and customers. Intermediaries which are sufficiently technologically savvy to raise their internet presence above those of underlying financial service providers are able to interpose themselves between providers and prospective customers without the physical and human infrastructure that a traditional advisory or broking business requires;...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Mark Watterson and Gary Barnett (Simmons & Simmons) review the recent First-tier Tribunal decision in Dollar Financial on the electronic introductions of customers to a payday lender.
The VAT finance exemptions predate and cannot possibly have contemplated the proliferation of the internet and the increasing prevalence of technology in the delivery of financial services. Inevitably therefore difficulties arise in applying these exemptions to today’s financial services industry.
In particular when the word ‘negotiation’ was included in article 13(B)(d) of the Sixth Council Directive few would have envisaged the extent to which the internet would facilitate bringing together financial service providers and customers. Intermediaries which are sufficiently technologically savvy to raise their internet presence above those of underlying financial service providers are able to interpose themselves between providers and prospective customers without the physical and human infrastructure that a traditional advisory or broking business requires;...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
