Tax advisory for digital banks, payment platforms, and CBB sandbox fintechs.
Payment processing fees — exempt financial service or standard-rated IT service? BenefitPay, Sadad, and merchant acquirers. Card scheme fees — typically exempt. Payment gateway technology — standard-rated.
Interest income — exempt financial supply. Account maintenance fees — exempt if core banking. Technology platform fees — standard-rated. API access charges to third parties — standard-rated.
Investment advisory fees — exempt under financial services? If pure technology platform — standard-rated. Management fees on assets — exempt. Performance fees — exempt if tied to investment returns.
CBB's Regulatory Sandbox allows fintechs to test innovative products under relaxed conditions. Tax obligations still apply during sandbox — VAT registration required if threshold met. Open Banking rules (2020) create new revenue models — API monetization, data services, and account aggregation each need VAT classification.
