Whether a party providing risk evaluation/improvement services is an insurance agent for tax purposes


The appellant claimed that the fees which it received for services which it provided were exempt from VAT on the basis that they were services performed by "insurance agents".

The appellant prepared questionnaire surveys (in cooperation with the insurer) to send to insureds to form a view on the insurance risk being presented. The appellant would analyse the questionnaire and send a report to the insurer. The appellant would then liaise directly with the insured to monitor compliance and help it satisfy any Risk Improvement Requirements adopted by an insurer as a condition of the quotation, within certain deadlines. The appellant's fees were paid by the insurer.

The tribunal held that the appellant was not an insurance agent. It played no part in finding prospects and introducing them to insurers and it did not bring insurance products to the attention of potential insureds.