- The Advocate General (AG) has presented an opinion in a case (C-243/23 Drebers) regarding the application of the VAT exemption to management services provided to Dutch pension funds implementing a conditional average salary scheme or CDC scheme.
- The AG concludes that the VAT exemption can be applied if the Dutch pension funds qualify as a common investment fund, which requires them to have the same characteristics as a UCITS (Undertakings for Collective Investment in Transferable Securities).
- The AG doubts whether the Dutch pension funds meet the conditions of a common investment fund, particularly regarding the investment risk borne by the participants and the accessibility of the funds to the public.
- The opinion highlights the importance of the characteristics of UCITS, such as an unlimited number of investors and a redemption or repurchase obligation.
- The outcome of this case will have implications for the VAT treatment of management services provided to Dutch pension funds and potentially for funds that are not UCITS.
The case will now be decided by the European Court of Justice (ECJ), and its ruling will provide clarification on the VAT exemption for management services provided to Dutch pension funds implementing certain schemes.
Source Deloitte
See also
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
