- A Oy is a Finnish company offering debt factoring services.
- Factoring involves assigning unpaid invoice debts to obtain early payment.
- A Oy charges a factoring commission and an arrangement fee.
- The CJEU examined if these charges are subject to VAT.
- The focus was on whether services are exempt as credit granting or classified as debt collection.
- Advocate General Rantos viewed both charges as services subject to VAT.
- Services are considered a single supply related to debt collection.
- Article 135(1)(d) of the EU VAT Directive has direct effect against conflicting national laws.
Source: taxscape.deloitte.com
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.
Latest Posts in "European Union"
- EU VAT Guide: Disbursements vs Recharges Classification and Tax Implications
- Hungary’s Carbon Tax Conflicts with EU Emissions Trading System Directive 2003/87
- EU VAT Compliance: B2C Distance Sales Rules and €10,000 Threshold Guide
- EU Parliament Backs Tax Code Simplification to Boost Economic Growth
- Roadtrip through ECJ Cases – Focus on “Liability to pay VAT – VAT shall be payable by any person who enters the VAT on an invoice” (Art. 203)
