Guidelines on 12% VAT Rate for Securities Management Services

• Legal Notice 231 of 2023 introduced a 12% reduced VAT rate on services related to the management of securities
• Guidelines were published on 12 March 2024 to provide guidance on applying the reduced VAT rate
• The reduced rate applies to securities portfolio management services provided on a discretionary or advisory basis
• The reduced rate does not apply to services related to capital structure, corporate strategy, mergers, or the purchase of undertakings
• Services that involve the receipt, execution, and transmission of orders to buy or sell securities are exempt from VAT
• The European Court of Justice ruled that services combining asset analysis and securities dealings are not exempt from VAT

Source: whpartners.eu

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.

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