Asset management services provided to pension funds subject to VAT

• The District Court of Noord-Holland ruled that the financial VAT exemption did not apply to the asset management services provided by X NV to a pension fund, specifically concerning the remuneration for managing assets during the payment (distribution) phase.
• X NV failed to demonstrate that participants in the payment phase bore investment risk, a condition for the VAT exemption as per the BPL Pensioen judgment, or that the pension fund was comparable to a DC scheme for fiscal neutrality.
• The court concluded that the asset management service was indivisible, meaning the management of assets in the distribution phase could not be considered an additional service merging with the exempt accrual phase management, and therefore, the VAT exemption did not apply to that portion.

Source Taxlive

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Dutch Court Rules Pension Fund’s Services Are VAT-Exempt Insurance, No Right to VAT Deduction

• Dutch court ruled on a VAT dispute involving a company pension fund seeking to deduct €17,011 in input VAT.
• The pension fund claimed it provided taxable administrative services; the tax inspector argued it offered VAT-exempt insurance services.
• The court found the fund’s activities qualify as insurance services under EU VAT law due to premium collection, risk assumption, and legal relationships with participants.
• The court rejected the fund’s argument that it only administered pensions, noting it bears full management and risk responsibility.
• The appeal was dismissed, confirming the pension fund has no right to deduct VAT.

Source: uitspraken.rechtspraak.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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