Global Daily Tax News, Ireland Clarifies VAT Rules For Financial Services Brokers, (Mar 15, 2024)

The Irish Revenue has released a new value-added tax guide, which discusses the VAT treatment of negotiation services in respect of financial services.

The guides sets out the conditions that must be met for a supply of an agency or negotiation service in respect of financial services to be value-added tax exempt. Such services involve bringing together parties with a view to either concluding a contract or negotiating a change to contract terms.

The guidance highlights that "Simply describing a party as an 'agent' or 'intermediary' or describing a supply as 'agency' or 'negotiation' is not sufficient for the VAT exemption to apply. It is a matter of fact in all cases whether the VAT exemption applies, based on the services provided and the relationship between the parties."