- Brokerage services in the purchase or sale of companies via share transactions are exempt from VAT.
- The DTZ Zadelhoff case clarified that services by merchant bankers, investment bankers, and M&A advisors can qualify as VAT-exempt brokerage services if they lead to a share transfer.
- The EU Court of Justice ruled that the objective nature of the transaction (share transfer) determines VAT exemption, even if the underlying asset is real estate.
- The broker’s role must be to facilitate a contract between parties without having an interest in the contract’s content.
- The ruling confirmed that the VAT exemption applies based on the transaction’s objective nature, not the parties’ intentions.
Source: btwinstituut.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.
Latest Posts in "Netherlands"
- Additional VAT Assessment for Private Use of Company Cars Upheld, but Penalty Reduced
- Office-to-Hotel Conversion Does Not Create a Newly Manufactured Building for VAT Purposes
- Margin Scheme Cannot Apply to Returned Goods Where Input VAT Was Deducted
- VAT Assessment for Private Use of Company Cars; Penalty Reduced from 80% to 25%
- Dutch VAT Reform Clarifies Reverse Charge Rules Under ViDA Directive
