In two recent decisions (joined decisions C-58/20, “K” and X-59/20 “DBKAG”, 17 June 2021) , the Court of Justice of the European Union has issued interesting developments regarding the conditions under which VAT exemption for fund management services could apply. These decisions concern tax services aimed at providing information legally required to ensure the correct taxation of investors, and the licensing of the right to access specialist risk management software specifically developed to run the risk management function of a fund management company.
We would like to emphasize that the Court did not explicitly rule that these two services could be VAT exempt; rather that the conditions of application could be. It is the responsibility of the Austrian Federal Tribunal, which referred these two cases to the Court, to verify that these conditions are met. All concerned service providers and their clients should consider how these developments may affect them.
Source: Deloitte
