More Clarity On VAT Exemption For M&A Services

In recent years, the VAT treatment of M&A services in share transactions – such as corporate finance advisors and investment banks – has been subject to considerable debate. Given the substantial success fees and the often limited right to deduct input VAT of their clients, the "VAT exemption for intermediary services in share transactions" can significantly reduce overall costs. In a Policy Decree published on 15 October 2025, welcome guidance is offered to the M&A practice.

Background

In the acquisition or disposal of (parts of) a business, various advisors are engaged. M&A advisors assist the buyer or the seller throughout the transaction process. If the transaction takes place via a share deal, the VAT exemption for intermediary services in share transactions ('intermediation exemption') could apply.