EGC T-184/25 (Veronsaajien oikeudenvalvontayksikkö) – AG Opinion – VAT Exemptions for Credit Management: No Exemption for Former Lenders

On February 25, 2026, the European General Court (EGC) issued the AG Opinion in the case T-184/25 (Veronsaajien oikeudenvalvontayksikkö)x.

Facts & Background

Context of the Case: This case addresses the VAT exemptions applicable to financial services under Directive 2006/112/EC, specifically regarding the management of credit following its sale from one financial institution to another. The case arises from a preliminary ruling request by the Korkein hallinto-oikeus (Supreme Administrative Court of Finland) concerning whether such transactions should be exempt from VAT.
Legal Questions Presented: The court posed three questions regarding the interpretation of Articles 135(1)(b), (c), and (d) of the VAT Directive. These questions seek clarity on whether credit management services provided by a former lender, after selling the credit, are exempt from VAT under these provisions.
Key Findings: Advocate General Brkan concluded that the management of credit by an undertaking that has sold it does not qualify for VAT exemptions under the mentioned articles. The rationale is based on the strict interpretation of the exemptions, focusing on the role of the original and current lenders in credit management.
Justification of the Decision: The Advocate General emphasized that the VAT exemptions for financial services aim to prevent an increase in consumer credit costs. Allowing the management of sold credit to be exempt could undermine the principle of fiscal neutrality and lead to tax avoidance schemes.
Conclusion and Implications: The opinion suggests that the management of credit remains taxable when the service is provided by the original lender post-sale. This interpretation aims to maintain a clear regulatory framework that prevents potential circumvention of VAT exemptions and ensures competitive fairness in the financial sector.

Articles in the EU VAT Directive 2006/112/EC

Articles 135(1)(b) and 135(1)(d) of the EU VAT Directive 2006/112/EC.

Article 135
1. Member States shall exempt the following transactions:
(b) the granting and the negotiation of credit and the management of credit by the person granting it;
(d) transactions, including negotiation, concerning deposit and current accounts, payments, transfers, debts, cheques and other negotiable instruments, but excluding debt collection;

Questions

If a financial institution sells the credits it has granted to a customer to another financial institution and continues to manage those credits itself for a fee after they have been sold, must Article 135(1)(b) of the VAT Directive, which provides for the exemption of the management of credits by the person who granted them, be interpreted as also applying to a situation in which the first-mentioned undertaking continues to manage the credits it has granted and sold to that other financial institution?
If the first question is answered in the negative and the management of credits by the first undertaking relates to credits serving as collateral for a bond issued by another financial institution, must Article 135(1)(c) of the VAT Directive, which provides for the exemption from entering into sureties and other security and guarantee obligations, be interpreted as also applying to a situation in which the first-mentioned undertaking manages credits serving as collateral for a bond issued by another financial institution?
If the second question is answered in the negative, must Article 135(1)(d) of the VAT Directive, which provides for the exemption of transactions concerning debts, be interpreted as also applying to a situation in which the first-mentioned undertaking manages debts transferred to another financial institution?

AG Opinion

(1) Article 135(1)(b) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax must be interpreted as meaning that the management of credit by an undertaking which sold that credit after having itself granted it and which continues to manage it for consideration for the purchaser is not covered by the exemption laid down in that provision.
(2) Article 135(1)(c) of Directive 2006/112 must be interpreted as meaning that the management of credit by an undertaking which sold it and which continues to manage it for consideration for the purchaser, who has issued a bond secured by that credit, is not covered by the exemption laid down in that provision.
(3) Article 135(1)(d) of Directive 2006/112 must be interpreted as meaning that the management of credit by an undertaking which sold that credit after having itself granted it and which continues to manage it for consideration for the purchaser is not covered by the exemption laid down in that provision.

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