Commentary

BB/7C/03 VAT—exemption of call centre services in the insurance sector

Part V16 Forms and other HMRC material

BB/7C/03 VAT—exemption of call centre services in the insurance sector

BB/7C/03 VAT—exemption of call centre services in the insurance sector

Business Brief, Issue 7. 1 July 2003

Following a recent VAT and Duties Tribunal decision, this article explains Customs' revised policy on the VAT treatment of call centre services where the call centre is attempting to sell insurance by cold calling and is able to put the insurer “on risk” at the point of sale.

The tribunal decision

The appeal involved TeleTech, a company providing call centre and IT support services to a wide range of clients. The decision related to the services supplied to an insurance company. TeleTech cold called people using contact lists provided by the insurer and attempted to sell them health insurance products. The products were very straightforward and the telephone operatives were selected mainly for their expertise in call handling and selling.

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