Not really a question to ask students, of course I understand that. Nevertheless, in recent years there has been a lot of discussion about VAT and pension funds. Why? Pension funds often outsource the asset management of their securities investments to third parties.
21% VAT is due on that outsourced management. Due to the exempt activities of pension funds, this VAT is not deductible.
A VAT exemption applies to the same asset management services to investment funds. However, this exemption does not apply to pension funds that operate a pure defined benefit (DB) pension scheme. In 2013, the European Court of Justice decided this in the Wheels case. However, a year later, in 2014, the court ruled that this VAT exemption can apply to defined contribution (DC) pension schemes.
Source Erasmus University Rotterdam
See also – Preliminary rulings asked by a Dutch Court to the ECJ on the exemption for the management of mutual funds
- ECJ C-643/22 ( BPL Pensioen) – Questions – Does the exemption for the management of mutual funds apply to a pension fund?
- ECJ C-642/22 (Pensioenfonds voor Fysiotherapeuten) – Questions – Does the…
- ECJ C-641/22 (Y) – Questions – Does the exemption for the management of mutual funds apply to a pension fund?
- ECJ C-640/22 (Fiscale Eenheid Achmea) – Questions – Does the exemption for the…
- ECJ C-639/22 (X) – Questions – Does the exemption for the management of mutual funds apply to a pension fund?
- ECJ C-644/22 (BPFL) – Questions – Does the exemption for the management of mutual funds apply to a pension fund?
