- The CJEU Advocate General issued a nonbinding opinion on the VAT treatment of credit management in securitization structures.
- Credit management by the originating lender after loan transfer is not VAT-exempt.
- Post-transfer servicing is considered an independent supply of services to the purchaser and is subject to VAT.
- VAT exemption should only apply to services that are part of the ongoing credit relationship to maintain VAT neutrality and prevent avoidance.
Source: kpmg.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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