Liability ― insurance ― agents, brokers and claims handling

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note examines the liability of the services of insurance agents, brokers and claims handlers.

For an overview of the VAT liability of insurance more broadly, see the Liability ― insurance ― overview guidance note.

For in-depth commentary on the legislation and case law, see De Voil Indirect Tax Service V4.123.

Liability of services of agents, brokers and claims handling

A supply of insurance is a supply of services and is exempt from VAT, see the Liability ― insurance ― overview guidance note. The VAT exemption for insurance also applies to the services of an insurance agent or an insurance broker acting in an intermediary capacity in relation to insurance.

Examples of services an insurance agent or an insurance broker may provide include:

•
introductory services when a person seeking insurance wants to be introduced to an insurer
•
claims handling services when an insurance policy holder has made a claim

The scope of the VAT exemption for insurance agents and insurance brokers

The VAT legislation provides

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