In principle, a fund should be tax neutral: only investments and investors should be taxed. As this is a well-known principle in the income tax field, there is no reason why it should not apply for indirect taxes such as VAT. The EU VAT Directive and the Luxembourg VAT law foresee a VAT exemption for fund management services. While this seems favorable, it actually masks the “hidden” VAT burden.
Source Deloitte
See also ECJ Cases: Focus on ”Exemption – Management of special investment funds” (Art. 135(1)(g))
Latest Posts in "European Union"
- Navigating VAT Exemptions: Recent ECJ Judgments and Their Implications for Intra-Community Transactions and Imports
- Roadtrip through ECJ Cases – Focus on Place of Supply of Intra-Community Acquisitions – ”Triangulation” (Art. 42)
- ECJ/General Court VAT Cases – Pending cases
- ECJ VAT Cases decided in 2025
- Comments on GC T-646/24: Simplification measure for triangular transactions applicable to fourth link in the chain
