The benefits and disadvantages of opting in for VAT
Regulated financial services are generally exempt from VAT for historical, policy and technical reasons, including the disproportionate cost for individuals with no entitlement to VAT recovery, and the difficulty in identifying the consideration for many such services. The application of an exemption gives rise to significant complexity with respect to determining the nature of the services supplied, the applicable VAT rate and the impact on input tax recovery.
Source Baker & McKenzie
Latest Posts in "European Union"
- Briefing documents & Podcasts: VAT concepts explained through ECJ/CJEU cases on Spotify
- Navigating VAT Exemptions: Recent ECJ Judgments and Their Implications for Intra-Community Transactions and Imports
- Roadtrip through ECJ Cases – Right to Deduct VAT and ”Substance over form” concept
- GC VAT Case T-363/25 (UNIX) – Order – VAT deductions can not be denied solely due to invoice trustworthiness if the underlying transactions occurred
- ECJ VAT Cases decided in 2025
