Pension funds exempt from VAT

The government has agreed to support EU guidelines which mean pension funds will no longer have to pay VAT on asset management services it buys in, the Financieele Dagblad reports on Wednesday.

The paper estimates the measure will cost the treasury €400m.
The Dutch government initially opposed the EU position but a spokesman says it has now agreed to implement the measure because ‘it will lead to a level playing field within Europe’.
Luxemburg and Belgium do not charge the tax which gives them an advantage in attracting foreign pension funds, the paper says. Ireland operates a partial exemption.
Sources told the paper that the Dutch government had changed its position following pressure from the ABP and PGGM pension funds and the lobby group Holland Financial Center.
The Center’s director Robin Fransman told the paper he was positive about the decision but pointed out it would still take ‘months or even years’ before the new guidelines come into force.

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