The ‘Ins & Outs’ of VAT in the Payments & Fintech Sector

The payments landscape continues to evolve rapidly, driven by changing customer expectations, technological innovation and new ways of delivering financial services. As traditional operators and emerging fintech businesses and service providers adapt to this changing environment, understanding the VAT implications of activities carried out within the wider payments ecosystem has become increasingly important.

This session provides participants with a practical overview of the VAT principles commonly encountered within the payments and financial services sector. The focus will be on how VAT principles are applied in practice, the challenges that can arise when assessing increasingly complex commercial arrangements, and the practical implications that VAT can have for costs, recovery and compliance.

Participants will gain a better understanding of the VAT considerations commonly encountered in the sector, including the application of relevant exemptions, the classification of services and the factors that can influence VAT outcomes.

The session will also explore common assumptions, recurring VAT risk areas and practical considerations that businesses may wish to bear in mind when reviewing their activities. Broader commercial considerations, including the impact of VAT on operating costs, service delivery and business decision-making, will also be discussed.

Throughout the session, practical examples and references to relevant case law will be used, where appropriate, to illustrate the application of VAT principles in different circumstances. The session will conclude with practical scenarios and discussion points designed to reinforce key concepts and encourage discussion around common industry challenges.

Topics on the Agenda

1. A practical framework for analysing activities within the payments and financial services sector from a VAT perspective.
2. Key VAT principles relevant to payment-related, financial and technology-enabled services.
3. Practical considerations arising from evolving business models, service offerings and industry developments
4. Common misconceptions, pitfalls and recurring VAT risk areas encountered in practice.
5. The impact of VAT on costs, recovery and broader compliance considerations.
6. Practical scenarios and case studies, including references to relevant case law where appropriate.

SPEAKERS