Tribunal rejects the Revenue’s challenge of VAT exemption for insurance intermediaries
Value added tax (VAT) is intended to be borne by the ultimate consumer of any particular goods or service. This is achieved by requiring each VAT-registered business to collect VAT from its customers (output VAT), while giving it the right to recover part, or all, of the VAT which it pays to its suppliers (input VAT). This right to recover input VAT takes the form of a credit against the output VAT for which the business has to account to HM Revenue & Customs (HMRC), and in some cases (for example, certain food retailers) can result in HMRC regularly repaying input VAT.
