Outsourcers set to lobby UK over Euro VAT ruling

Insurers, brokers and outsourcers are set to face a significant increase in tax costs following a European Court of Justice (ECJ) ruling that VAT should be charged where back-office services, relating to insurance, have been outsourced.

In the case, referred by the Dutch Supreme Court, the ECJ ruled that back-office services provided by Accenture to a Dutch unit of Allianz, Universal Life do not qualify for exemption when it comes to VAT.

According to the judgment, these activities "do not