ECJ Broadens VAT Exemption for Negotiation Services in Mortgage Intermediation Cases

• The ECJ clarified that comprehensive mortgage intermediation services may qualify as VAT exempt negotiation services.
• The exemption applies even if the intermediary cannot influence credit terms or act on behalf of credit institutions.
• The Court emphasized that negotiation can include simply identifying suitable contract opportunities, not just altering terms.
• The ECJ’s broad interpretation equates negotiation with mediation, potentially expanding VAT exemptions to more services.
• Businesses should seek advice, as more services may unexpectedly qualify for VAT exemption, affecting VAT recovery.

Source: dlapiper.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.

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