No partial VAT exemption for management of mixed pension schemes

• The District Court of Noord-Holland ruled that X cannot partially apply a tax exemption for the management of special investment funds to its services for Stichting Z, which operates multiple pension schemes.
• The court views X’s management activities for Stichting Z as a single, indivisible service that cannot be split to allow for partial exemption application.
• The appeal by X for a refund was dismissed because it failed to demonstrate that the management of the survivor’s pension scheme qualified for the exemption, reinforcing that a single service receives a single tax treatment.

Source Taxlive

---

VAT Exemption Denied for Services to Pension Funds with CDC and DC Schemes

• The case concerns whether a company can apply a VAT exemption to its services for pension funds managing both Collective Defined Contribution (CDC) and Defined Contribution (DC) schemes.
• The court ruled that the VAT exemption under Article 11(1)(i)(3) of the Dutch VAT Act does not apply, either wholly or partially, to these services.
• The dispute involved a tax assessment for the second quarter of 2019, with the company’s objection and subsequent appeal being rejected.
• The court’s decision followed a preliminary ruling from the European Court of Justice.
• The case was heard by the District Court of North Holland, with both parties represented by legal counsel.

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.

---

---