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Summary of Consultation Response: VAT Treatment of Fund Management Services

  • The government published a technical consultation on the VAT treatment of fund management services in December 2022.
  • The consultation proposed reform of the VAT legislation to codify policy.
  • The government has now published a summary of responses to the consultation.
  • The government will retain the current list of fund types to which the fund management exemption applies.
  • Respondents suggested defining the term ‘management’ for greater clarity, but the government believes the current position established by settled case-law is sufficient.
  • The government will review current guidance to provide clarity to the existing legal position, without widening the definition.
  • After December 31, 2023, businesses will not be able to rely on the direct effect of EU law.

Source: taxscape.deloitte.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.

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