Wheels CJEU Ruling Of March 7, 2013

Pursuant to article 135 (1) (g) of Directive 2006/112/EC (the "VAT Directive") Member States must exempt from VAT "the management of special investment funds as defined by Member States". A group pension fund that provides defined benefits to the group employees lacks the salient features of "special investment funds" as understood by the Court of Justice of the European Union ("CJEU"). As a consequence, management services provided to such pension funds are subject to VAT at ordinary rates.

The facts and question at issue

Wheels Common Investment Fund (the "Fund") is a fund pooling the assets of a number of Ford group pension schemes. The Fund receives its financing by way of contributions by the employer and the employees, a trustee managing the Fund in the context of a retiring pension scheme. Under that scheme, the employees are entitled to pension payments based on the length of the service with the employer and of the amount of salary, as is typical