- Finnish company ‘A Oy’ provides financial services to business clients in sectors with short turnover times
- Company uses factoring via assignment and factoring via pledge to provide credit in exchange for outstanding invoices
- Central tax commission believes factoring is subject to VAT as payment for debt management services
- Finnish court seeks clarification from CJEU on whether factoring falls under VAT directive and how exemption provisions should be interpreted
- Questions include whether factor selling client’s debts also provides services covered by VAT directive, and where financing commission fits in VAT directive
Source: nlfiscaal.nl
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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