EU Court: VAT Exemption Applies to Credit Intermediaries Assisting Mortgage Contracts Without Direct Authority

• The activity involves facilitating the conclusion of a contract between two parties.
• VAT exemption for credit negotiation also applies to intermediaries who assist clients with mortgage credit contracts and are paid by credit institutions based on the contracts concluded through their intermediation.
• This exemption applies even if the intermediary cannot act on behalf of the credit institutions, has no influence on the contract terms, and clients are free to choose whether and with whom to contract.
• The EU Tribunal confirmed this interpretation in a recent judgment, referencing relevant EU directives and case law.
• The case involved a Portuguese credit intermediary whose services were deemed VAT-exempt, despite a tax authority challenge, as their role fit the definition of “negotiation” under EU law.

Source: eutekne.info

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See also

• General Court Case T-657/24 (Versãofast) – Judgment – VAT exemptions apply uniformly; intermediaries effectively support credit negotiations – VATupdate

• Roadtrip through ECJ Cases – Focus on ”Exemption – Financial transactions – Credits and transfer of Credits” (Art. 135(1)(b)) – VATupdate

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