Comments on ECJ C-250/21: VAT exemption for financial services based on the sub-participation agreement

• The European Court of Justice (ECJ) recently ruled on a case involving the application of VAT exemption for financial services.
• The case concerned Fund O, which planned to enter into agreements with banks or other investment funds.
• The agreements involved the transfer of revenue from receivables to Fund O, up to a specified financial sum.
• The difference between the amount paid to the originator and the amount received by Fund O represented Fund O’s reward.
• Fund O sought a tax opinion to confirm VAT exemption for the services, but the Ministry of Finance rejected the exemption.
• The case reached the ECJ, which determined that the services provided by Fund O fell under the concept of credit provision exempt from VAT.

Source Accace

See also

• ECJ C-250/21 (O. Fundusz lnwestycyjny zamknięty reprezentowany przez O) – Judgment – Exemption for the granting of credits apply applies to sub-participation agreements

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