What is the VAT rate for execution-only stock brokering services?

Execution-only stock brokering services are classified as exempt from Value Added Tax (VAT). This means that these services do not incur VAT, and businesses providing this service cannot charge VAT on their fees.

The exemption is due to the nature of the service, which is considered a financial service. Financial services in general, including stock brokering, often fall into the exempt category under VAT legislation. As a result, companies offering these services do not have to include VAT in their pricing, nor can they reclaim any VAT incurred on their costs related to providing these exempt services.

This contrasts with the other potential VAT rates. A standard rate would mean VAT is charged and recoverable, while a zero rate would suggest that VAT is charged at 0%, but still allows for a reclaim of input tax, which does not apply here. The reduced rate is not applicable because execution-only services do not meet the criteria required to benefit from this rate. Hence, the categorization of execution-only stock brokering services as exempt reflects their non-taxable nature under VAT law.