When Technical Expertise Isn’t Enough: Why VAT Advice Starts with Curiosity

In VAT consultancy, technical knowledge is an essential starting point. But technical knowledge on its own can only take you so far.

You can be the most technically equipped VAT professional in the room, quoting articles from the Directive, the Implementing Regulation, or CJEU judgments with ease. Yet, unless you take the time to truly understand your client’s business model; how they generate revenue, who their counterparties are, and what the product or service lifecycle looks like, you risk advising only on the theoretical side of VAT. And that’s where the risks begin.

Why Understanding the Business Matters

VAT is not an academic exercise. It’s a transaction-based tax, and every transaction is born out of commercial intent. As VAT consultants, we are not meant to be passive interpreters of legislation, we must be business interpreters through the lens of VAT.

When advising on whether an exemption applies, or analysing the place of supply, what’s required is more than legal knowledge. It’s commercial understanding. Consider, for example, sectors such as iGaming or Financial Services, where the VAT treatment of transactions depends on detailed distinctions:

• Is the operator offering a game of chance or a skill-based platform?
• Is a PSP acting as principal or agent?
• Are the services automated or involving human intervention?

The nature of the service, the contractual arrangement, and how it functions in practice are all vital.

Asking Questions Should Not Be Feared

One of the most common insecurities early in a consultant’s career is this: “Will the client think I’m inexperienced if I ask too many questions?” I had the same concern when I first started advising clients in the gaming sector. I wasn’t familiar with the terminology, live casino vs RNG, sportsbook vs pool betting, or the distinction between B2C and white-label models. So I asked. Then I researched. Then I asked again.

The same happened when I stepped into the world of FinTech. It took time to understand what distinguishes an acquirer from an issuer, what a merchant does, and how a PSP plugs into the value chain. Again, curiosity was key. And here’s the truth: the client prefers that you ask the right questions rather than pretend to know. They can always spot the difference.

Jargon is the First Barrier: Break It Down

Sometimes, during client calls, you’ll hear acronyms or industry terms you’ve never come across. Pause. Ask them to explain. Encourage them to simplify it for you, not because you’re not intelligent, but because precision matters. Misunderstanding a term can lead to misapplying the law. And that could be costly for the client, and your credibility. Even better, after the call, do your own research. Use diagrams. Build a visual map of the transaction chain. Reconstruct the flow of funds. This is where advisory work shifts from generic interpretation to value-added guidance.

The Consultant’s Role Has Evolved

Clients no longer expect just a citation of Article 135(1)(d) or Article 44. They expect insight. They expect industry awareness. They expect you to challenge assumptions, not just tick boxes. Understanding the business isn’t just helpful, it is the foundation of reliable VAT advice.

Final Thought

In our line of work, the legislation remains constant. What changes is the business model. So before jumping to conclusions or interpreting the law, take a step back and observe the business. Study its structure, question its logic, and align your advice accordingly.

Because in VAT, the right treatment starts with the right understanding.

Author: Brandon Gatt, Partner, Zampa Partners