- New Rule for Technical/Administrative Services: Effective January 1, 2026, the VMI introduces Article 28(9), which clarifies that purely administrative, physical, technical, or similar services that do not alter the legal or financial position of the parties involved will not be considered VAT-exempt financial services and may instead be classified as standard taxable supplies.
- Repeal of Detailed List Mechanism: The previous requirement for an authorized institution to establish a detailed list of exempt financial services under Article 28(8) will be removed starting January 1, 2026, simplifying the framework for determining exempt services.
- Scope of Exempt Financial Services: The VAT exemption under Article 28 covers various financial activities, including loans, payment-related services, currency transactions, and securities or derivatives transactions. The updated guidance also mentions the option for businesses to apply VAT to certain exempt financial services, along with the necessary notification and minimum period requirements for such applications.
Source Orbitax
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