EU Law Developments On VAT For Investment Managers

The recent judgment of the Court of Justice of the European Union (ECJ) in the GfBk case provides important guidance on the VAT treatment of advisory services to investment funds and investment vehicles. In the time since the decision, the case has assisted the analysis and structuring as regards investment funds and investment vehicles established in the EU, regardless of where the manager is located, and also as regards investment managers located in the EU. This article is written from the perspective of Irish VAT law, but should have similar application across the EU.

In Ireland, the case is relevant to Irish domiciled fund vehicles (both those regulated by the Central Bank of Ireland and those outside the scope of that regulation) and also Irish investment vehicles (known as "section 110 companies") commonly used by Cayman Islands, Delaware and Channel Islands funds to hold their underlying investments.