- The management of special investment funds is exempt from VAT according to the VAT Directive.
- The European Court of Justice ruled that the right to use software and specific administrative services may fall within this exemption.
- The concept of “management” includes administrative functions such as accounting and tax compliance.
- The ruling creates leeway for the discussion on whether a wider range of services provided by external advisors may also benefit from the exemption.
- Portuguese Tax Authorities have ruled on whether services provided by brokers to a management entity can fall within the exemption.
- The PTA has formal requirements that must be met for the exemption to apply, including the acquirer qualifying as a “management entity of CIV” and the services corresponding to legally assigned tasks.
- Services such as ongoing management of investment fund assets, accounting, legal, or consulting services may be considered within the scope of the VAT exemption.
- The PTA’s position seems to go beyond that of the ECJ.
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.