Are Financial Intermediary Services Capable of Being Exempt from VAT in an Outsourcing Context?

In this article, the author examines the decision of the UK First-Tier Tribunal in eMerchantPay. In this case, the Tribunal analysed if certain outsourced services could qualify as financial intermediation services and therefore as exempt from VAT. The author argues that the conclusion reached by the FTT requires careful consideration and may not be applicable in all scenarios. It must be noted that, since HMRC did not lodge an appeal against it, the decision in eMerchantPay is final.