The Court of Justice of the European Union (CJEU) issued a decision on 17 June 2021 in the joined Austrian cases K (C-58/20) and DBKAG (C-59/20), the latter of which involved a service provider established in Germany, in which the court specified under what conditions the VAT exemption for the management of special investment funds (SIFs) under article 135(1)(g) of the EU VAT directive applies in outsourcing cases. As described further below, the court ruled that the VAT exemption may apply to outsourced services that form a distinct whole fulfilling the specific and essential functions of the management of the SIF. The court’s ruling is in line with previous case law, as well as with the position of the German tax authorities. The court also ruled that the requirement of a “distinct whole” does not require the relevant services to be outsourced in their entirety.
Source Deloitte
See also
- C-58/20 (K) & C-59/20 (DBKAG) – Judgment – Tax work and use of software provided to investment fund management companies are VAT exempted
- Roadtrip through ECJ Cases – Focus on ”Exemption – Management of special investment funds” (Art. 135(1)(g))
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