VAT Exemption Of Management Services: The BlackRock Case

BlackRock Investment Management (UK) Ltd engaged a US company to provide them with investment management
services in relation to funds that are eligible to receive VAT exempt management services and funds that are not eligible
for such exemption
In the framework of a litigation with the UK authorities in order to determine whether a single supply of management
services received from the US company should benefit, even partly, from the VAT exemption applicable to fund management
services, the UK courts raised a prejudicial question to the CJEU
In his opinion dated 11 March 2020, the Advocate General considered that a single supply of services rendered for the
ultimate benefit of funds eligible and not eligible to receive VAT exempt management services should not benefit, even
partially, from this VAT exemption
The judgement to be released by the CJEU in this case will need to be closely monitored as it may have a significant
impact on the VAT position of Luxembourg fund managers

Source: atoz.lu

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