Decree On VAT Exemption For Fund Management Updated

On November 2, 2021, the decree on the VAT exemption for fund management was updated. This was prompted by a Dutch Supreme Court ruling from December 2020 that allowed service providers with a license for individual asset management to also qualify for the VAT exemption.

In the decree on the VAT exemption for fund management from 2019, the State Secretary of Finance had explicitly taken the position that the exemption did not apply to products that fall under the regulatory regime for individual asset management. Due to a Dutch Supreme Court ruling from December 2020 (see our earlier news item in this regard), this position was outdated and the decree had to be updated. This has now been done - under the updated decree, these types of products can also share in the fund exemption, provided the product is sufficiently similar to a UCITS. In addition, there are a number of other changes to the decree: