EU Court: Post-Assignment Credit Management Services Are VAT Taxable

The EU General Court held that credit management services provided by an original lender after loans are transferred are subject to VAT.
The VAT exemption for credit management applies only within the direct lender-borrower relationship.
After assignment or securitization, the original lender is seen as providing taxable services to a third party, not managing its own credit.
The Court also ruled these services do not fall under exemptions for credit guarantees or debt-related transactions.
The ruling may increase irrecoverable VAT costs for SPVs and affect securitization and covered bond structures across the EU.

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.