AG opinion: management services for DC pension schemes are VAT exempt

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By Michael Cant

In the Danish case of ATP Pension Service (C-464/12), the advocate-general (AG), legal adviser to the Court of Justice of the European Union (CJEU), has stated his opinion that: management services provided to defined-contribution (DC) pension schemes are VAT exempt; and DC schemes should be differentiated from defined-benefit (DB) schemes.

The decision of the CJEU may not necessarily follow the opinion of the AG but if the CJEU does agree then DC schemes across the EU could achieve considerable cost savings going forward and be able to reclaim VAT wrongly paid for management services in the past.

ATP provides administrative services to pension funds — for example dealing with payments into and out of the funds and advising both employees and employers on pension funds. It mainly acts for DC pension schemes…

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