The European Commission intends to review the rules on the VAT treatment of financial and insurance services and is seeking a second round of public input via consultation here. As a part of the Action Plan, the European Commission promised to present a legislative proposal in the 3rd quarter of 2021 to modernize the VAT rules for financial services in 2022/2023. The modernization should take account of the rise of the digital economy and the increase in the outsourcing of input services by financial and insurance institutions. The proposal should also ensure a level playing field within the EU and take into consideration the international competitiveness of EU companies.
Source: Deloitte NL
