- The European Court of Justice (ECJ) ruled on the application of VAT exemption for financial services in a recent case.
- The case concerned Fund O, which planned to conclude agreements with banks or other investment funds based on a sub-participation agreement.
- The Polish Ministry of Finance rejected the VAT exemption, arguing that the agreement cannot be considered as a loan agreement due to specific aspects.
- The case eventually reached the court, which considered that while this agreement indeed represents a financial service aimed at acquiring financial resources, it has specific characteristics distinguishing it from a loan agreement.
- The ECJ decided that services provided by the sub-participant based on the sub-participation agreement fall under the concept of credit provision exempt from VAT.
Source: accace.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
