VAT Exemption for Financial Intermediation: Functional Approach Broadens Scope, Impacts FinTech and Platforms

• The Versãofast judgment clarifies that VAT exemption for credit intermediation depends on the functional role of the service in enabling credit agreements, not on formalities like negotiation or exclusivity.
• Pre-contractual activities such as identifying borrowers, collecting documents, and presenting offers can qualify as VAT-exempt intermediation if they facilitate the conclusion of loans.
• The ruling’s logic applies beyond credit to other financial services (e.g., investment product distribution, securities brokerage, insurance) if the service bundle enables the exempt transaction.
• FinTech platforms that actively facilitate credit agreements may qualify for VAT exemption, while those offering only generic support or advertising do not.
• Financial service providers should review their business models and contracts to determine if their activities qualify for VAT-exempt intermediation.

Source: news.pwc.be

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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