- The Supreme Administrative Court (SAC) confirmed that factoring activities are VAT taxable debt collection services.
- Both invoice factoring and trade factoring are included under this ruling.
- The decision follows the European Court of Justice (ECJ) judgment in case C-232/2024, Kosmiro.
- All fees related to factoring services are considered VAT taxable.
- The SAC clarified that the VAT Act must be interpreted in line with the VAT Directive and ECJ case law.
Source: taxand.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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