- Court Ruling on Pension Fund Classification: The Court of Appeal determined that an industry-wide pension fund operating under an average pay scheme does not constitute assets brought together for collective investment, as participants do not bear the primary investment risk.
- Pension Determination Factors: The ruling emphasized that in an average pay scheme, pensions are primarily based on salary and years of service rather than investment results, meaning that any adjustments to pensions (such as indexation or reductions) are only indirectly related to investment performance.
- VAT Exemption Not Applicable: As a result of the findings, the Court of Appeal concluded that the pension fund does not qualify for the VAT exemption on management services, affirming that the participants do not run direct investment risks, and hence, the appeal regarding VAT treatment was denied.
Source:
- futd.nl
- Taxence
- Court of Appeal of The Hague 22 April 2025 (published 14 May 2025), ECLI:NL:GHDHA:2025:747, BK-21/616
Law: art. 11(1)(i), third, VAT Act 1968
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.
