VAT exemption confirmed for outsourced advisory services on funds’ investments in transferable securities

On 7 March 2013, the Court of Justice of the European Union (“CJEU”) delivered its judgment in the case GfBk Gesellschaft für Börsenkommunikation mbH v. Finanzant Bayreut(C-275/11) (“GfBk”) regarding the scope of the VAT exemption laid down in Article 135.1.g) of Council Directive 2006/112/EC of 28 November 2006 (formerly Article 13 B(d)(6) of Directive 77/388/EEC).

According to the CJEU, advisory services concerning investment in transferable securities, provided by a third party to an investment management company which is the manager of a special investment fund, fall within the concept of “management of special investment funds” for the purposes of the exemption laid down in that provision, even if the third party has not acted on the basis of a mandate. In the case at hand, the advisory services under consideration were recommendations concerning the purchase and sale of securities.

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