Pension Fund’s Entire Premium Subject to VAT; No Insurance Exemption for Pension Administration

• The case concerns a sector pension fund outsourcing pension management and seeking to deduct VAT on related costs.
• The fund argued that its pension scheme execution is a taxable service, allowing VAT deduction; the tax inspector disagreed, claiming it is VAT-exempt as an insurance service.
• The court ruled that the pension scheme execution is not VAT-exempt because receiving a pension is not conditional on prior premium payment.
• Therefore, the fund can deduct the VAT paid to the third party.
• The court decided that VAT is due on the entire premium received by the fund, not just a part.

Source: uitspraken.rechtspraak.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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