- Court Decision: The Court of Appeal of The Hague ruled that an occupational pension fund with a collective defined contribution scheme does not qualify for VAT exemption under Article 11(1)(i) of the VAT Act 1968, as it does not carry investment risks comparable to those of investment funds.
- Investment Risk Assessment: The court determined that pension benefits primarily depend on pensionable income and years of service, rather than directly on investment results. Although investment performance affects indexation, participants bear only limited risk, mitigated by guarantees and actuarial rates.
- Rejection of Fiscal Neutrality Argument: The court dismissed claims of fiscal neutrality, highlighting that the pension fund participants have guaranteed benefits, lack individual investment choices, and do not fully share in investment outcomes, further confirming the fund’s ineligibility for the VAT exemption.
Source: btwjurisprudentie.nl
See also
- ECJ C-639/22 (X & others) – Judgment – Interpretation of VAT exemption for pension funds – VATupdate
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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