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VAT exemption on the management of Funds

CJEU Case C-595/13

March 2015

In a new Case “Fiscale Eenheid X NV cs” C-595/13, the CJEU will have a new opportunity to define the scope of the VAT exemption on the “management of Funds”.

The questions referred are the following ones:

  • Is Article 13B(d)(6) of the Sixth Directive 1 to be interpreted as meaning that a company which has been set up by more than one investor for the sole purpose of investing the assets assembled in immovable property may be regarded as a special investment fund within the meaning of that provision?
  • If the answer to Question 1 is in the affirmative: is Article 13B(d)(6) of the Sixth Directive to be interpreted as meaning that the term ‘management’ also covers the actual management of the company’s immovable property, which the company has entrusted to a third party?

According to the Court Calendar, the conclusions of the Advocate General, Mrs. Kokott, should be issued on the 20th of May 2015.

This Case should be carefully followed in Luxembourg to ensure that this future decision would not impact the scope of the Luxembourg Investment vehicles currently eligible to the VAT exemption on management services.

This article was featured in Input, Deloitte Luxembourg's VAT Newsletter.

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