The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

No more VAT for EU fund managers?

Will European fund managers be exempted from value-added tax on their outsourced management services?

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.

At present, it is unclear whether management services such as trustee services, depositary services and administration and accounting services are exempt from VAT. Kokott, however, is suggesting that where such outsourced services play a distinctive role in the fund management process, they should be so exempt. This does not include pure accounting or safe-keeping, where such services are not deemed part of the fund management process. If supported by the ECJ, the suggestion will become the new template for fund managers.

What this essentially means is lower costs for fund managers, which ultimately work through into lower fees to investors.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree