What is or is not a ‘special investment fund’ for VAT purposes? Etienne Wong (Old Square Tax Chambers) and Alex Tostevin (Dentons) examine the concept, tracing its evolution from its origin to the most recent CJEU ruling.
Article 135(1)(g) of the Principal VAT Directive (PVD) exempts the ‘management of special investment funds as defined by member states’. Tax authorities and taxpayers have clashed repeatedly over the exemption – specifically over what amounts to ‘management’ and what precisely ‘special investment funds as defined by member states’ means – and litigation continues. There is no better illustration of the confusion that pervades than the UK legislation taking over 500 words to implement a ten word exemption. This reflects the ‘band-aid’ style approach the UK has been taking reacting to each judicial decision as it comes rather than coming to grips with the underlying concepts. To be fair...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
What is or is not a ‘special investment fund’ for VAT purposes? Etienne Wong (Old Square Tax Chambers) and Alex Tostevin (Dentons) examine the concept, tracing its evolution from its origin to the most recent CJEU ruling.
Article 135(1)(g) of the Principal VAT Directive (PVD) exempts the ‘management of special investment funds as defined by member states’. Tax authorities and taxpayers have clashed repeatedly over the exemption – specifically over what amounts to ‘management’ and what precisely ‘special investment funds as defined by member states’ means – and litigation continues. There is no better illustration of the confusion that pervades than the UK legislation taking over 500 words to implement a ten word exemption. This reflects the ‘band-aid’ style approach the UK has been taking reacting to each judicial decision as it comes rather than coming to grips with the underlying concepts. To be fair...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")