Unless there's a non-UK aspect, a commission paid for making something happen like a finders fee or a sales agent, introductory fees will always be VATable. ... Because of the underlying exempt insurance or exempt finance it's a common misconception that the fee received by the introducer can also be exempt.

Is VAT payable on referral fees?

In certain types of transactions that we deal with, we pay referral fees to introducers. ... We will pay vat on top of the referral fee where the introducer is vat registered.

Are financial advisor fees subject to VAT?

As now, remuneration for introducing a customer to an exempt financial service, can be in the form of fees paid by the client to the adviser and no VAT is chargeable on such fees. Put simply, general financial advice is taxable and intermediation is VAT exempt.