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Was the appellant making exempt supplies of insurance?

By Andrew Needham, January 2021

This was an appeal from the First-tier Tribunal (FFT) against its decision to dismiss its appeal against a decision by HMRC that the appellant was making exempt supplies of insurance services or was acting as an insurance intermediary and not entitled to recover the associated input tax. 

The appellant carries on a business that involves the provision of storage facilities to both business and non-business ‘domestic’ customers. The appellant required its domestic customers to insure their goods under a policy that was provided by Assay Insurance Services Limited (‘Assay’), an affiliated company incorporated in Guernsey.  

The appellant argued that the arrangements resulted in it making, for VAT purposes, exempt supplies of ‘insurance intermediary’ services to Assay. Accordingly, because Assay belongs outside a Member State for VAT

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