Introduction letter on VAT exemption for Alternative Investment Fund management by BMF Berlin

• The BMF has issued a letter regarding the VAT exemption for the administration of Alternative Investment Funds
• The scope of the VAT exemption has been expanded to include all alternative investment funds, including OGAW and pension funds
• Management services for all AIFs are now VAT exempt, including venture capital funds
• The requirement to compare AIFs with OGAW for VAT exemption has been eliminated
• The VAT exemption is based on EU law, specifically Article 135 of the VAT Directive
• Changes to the VAT application decree have been made to reflect the expanded VAT exemption for AIF administration

Source: bundesfinanzministerium.de

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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