Brokers have been saved from multi-million pound VAT bills following the announcement...
Brokers have been saved from multi-million pound VAT bills following the publication of a European Court of Justice ruling today.
An initial ruling by the court's Advocate General in February led to widespread fears within the industry that brokers would be hit by VAT bills on commissions running into the millions.
But legal experts have today said that broker's concerns are largely unjustified.
Peter Mason from CMS Cameron McKenna said: “Providing a broker's work is ultimately leading to agreement between insurer and insured, then he will continue to be exempt from paying VAT.
“It doesn't matter if he passes business to another broker, and that broker passes it on to another broker – as long as the ultimate goal is to facilitate a contract between the customer and the insurance provider he will be safe, regardless of the length of the chain.”
