No more VAT for EU fund managers?

Will European fund managers be exempted from value-added tax on their outsourced management services? If UK financial services group Abbey’s case is anything to go by, this could finally become clear. Abbey has brought a case to the European Courts of Justice in which it claims it should not have to pay VAT on the outsourced management services for its funds. The ECJ is expected to take several months to come to a final decision, but it is well known that the court usually follows advocate general Juliane Kokott’s suggestions, and she has supported Abbey’s claims.