VAT recovery: management and investment costs of a pension fund - .PDF file.
The Court of Justice of the European Union (CJEU) has ruled in the case of PPG Holdings BV (C-266/12) that an employer is entitled to recover VAT on services procured by the employer for the management and operation of its pension fund.
The CJEU held that such expenditure was directly linked to the taxable activities of the employer, even though the pension fund was separate from the business.
The ruling is in conflict with HM Revenue & Customs’ policy, which distinguishes between input tax on recoverable ‘management’ costs and irrecoverable ‘investment costs’ and we await their comment…
If you are registered and logged in to the site, click on the link below to read the rest of the Nabarro briefing. If not, please register or sign in with your details below.