CJEU Expands VAT Exemption Scope for Credit Intermediaries, Clarifies Criteria for Eligibility

• The CJEU ruled that VAT exemption for credit intermediaries applies even if the intermediary cannot bind or influence credit institutions.
• The exemption covers services that facilitate credit agreements, even if they include administrative tasks, as long as the overall aim is to bring parties together.
• The intermediary’s inability to bind credit institutions or the customer’s freedom to choose does not affect the exemption.
• Mortgage, loan, and credit intermediaries should review their service packages to determine if the exemption applies.
• The judgment broadens the VAT exemption’s scope, benefiting banks and financial institutions using intermediaries.

Source: bdo.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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