DTZ Zadelhoff Case: VAT Exemption for Mediation Services in Share Transactions Confirmed

• 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.

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