Netherlands: Pension funds not treated as special investment funds eligible for VAT exemption
A CJEU Advocate General opinion concerning pension funds not treated as special investment funds eligible for VAT exemption
Pension funds not treated as special investment funds eligible for VAT exemption
The Advocate General of the Court of Justice of the European Union (CJEU) on 14 March 2024 issued an opinion that certain Dutch pension funds did not qualify as “special investment funds” such that management services provided to such funds are exempt from value added tax (VAT).
The cases are the joined cases C-639/22 to C-644/22.
Summary
A fund that displays identical characteristics as an “undertaking for collective investment in transferable securities” (UCITS) or is at least sufficiently comparable to be in competition with a UCITS, is also regarded as a special investment fund. However, the Advocate General specifically found that the Dutch pension funds were not sufficiently comparable to UCITSs to be regarded as special investment funds.
In addition, although under guidance of the Dutch Ministry of Finance, pension funds that execute individual defined contributions plans are regarded as special investment funds, the Advocate General found that the Dutch pension funds were not comparable with such pension funds.
Read a March 2024 report [PDF 59 KB] prepared by the KPMG member firm in the Netherlands
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.