- A Oy is a Finnish company offering debt factoring services.
- Factoring involves assigning unpaid invoice debts to obtain early payment.
- A Oy charges a factoring commission and an arrangement fee.
- The CJEU examined if these charges are subject to VAT.
- The focus was on whether services are exempt as credit granting or classified as debt collection.
- Advocate General Rantos viewed both charges as services subject to VAT.
- Services are considered a single supply related to debt collection.
- Article 135(1)(d) of the EU VAT Directive has direct effect against conflicting national laws.
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.
