When should you charge VAT on advice?

VAT

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The Personal Finance Society has issued a guide to help advisers understand when they should and should not charge value added tax (VAT) on their services.

As set out by HMRC earlier this year, it focus on a six-stage process advisers need to follow in order for the activity to be classed as intermediation, and therefore VAT exempt: 1. gather information about the customer (fact-find) 2. carry out research to find suitable investment options 3. provide the customer with reports, financial health-checks, forecasts 4. recommend specific investment products to the customer, including the prices at which these can be arranged 5. act between the product provider(s) and the customer with a view to arranging the sale of the Retail Investment Produ...

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