The Dutch tax authority (Belastingdienst) has notified various collateralised loan obligation issuing vehicles (CLO SPVs) that it has changed its view that collateral management services and collateral administration services (CLO Services) are exempt from Dutch VAT.
This means that going forward the Dutch tax authority expects Dutch VAT to be charged on these services. This VAT represents an absolute cost to these structures as it cannot be recovered.
CLO SPVs, their collateral managers, their other service providers and investors urgently need to evaluate their position.
Source: jdsupra.com
