The ECJ's decision in JP Morgan1 has significantly expanded the scope of the VAT exemption for asset management enabling investment funds to achieve significant ongoing VAT savings as well as opening the door for retrospective claims to recover potentially very large amounts of overpaid VAT.
While the case itself concerned whether investment trust companies (ITCs) must pay VAT on asset management fees the guidance from the ECJ strongly suggests that the exemption covers the management of many other types of investment vehicles.
This article explores what other funds may now be able to benefit from the exemption and in particular examines the case for exempting the management of pension funds.
Background And The Advocate-general's Opinion
...
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The ECJ's decision in JP Morgan1 has significantly expanded the scope of the VAT exemption for asset management enabling investment funds to achieve significant ongoing VAT savings as well as opening the door for retrospective claims to recover potentially very large amounts of overpaid VAT.
While the case itself concerned whether investment trust companies (ITCs) must pay VAT on asset management fees the guidance from the ECJ strongly suggests that the exemption covers the management of many other types of investment vehicles.
This article explores what other funds may now be able to benefit from the exemption and in particular examines the case for exempting the management of pension funds.
Background And The Advocate-general's Opinion
...
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)")