- The ECJ issued a preliminary ruling on Finnish VAT rules for factoring services (Case C-232/24).
- Factoring commissions and arrangement fees charged by factors are considered taxable services under EU VAT law.
- These fees are subject to VAT regardless of whether the debts are transferred or only serve as security.
- Factoring services are treated as a single, indivisible debt collection service for VAT purposes.
Source: news.bloombergtax.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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