European Union’s First Chamber of the Court of Justice rules against BlackRock on VAT exemption

On Thursday, the European Union’s First Chamber of the Court of Justice ruled that BlackRock is not exempt from paying value added tax (VAT) on part of a service from an outside supplier to help manage its funds.

BlackRock, the world’s biggest asset manager had taken the stand that it need not pay VAT on all of its service, since special investment funds are exempt from the tax; this view was disallowed by Britain’s tax authority.

The First Chamber of the Court of Justice ruled that a “single supply of management services, provided by a software platform belonging to a third-party supplier for the benefit of a fund management company, which manages both special investment funds and other funds, does not fall within the exemption provided for in that provision.”



Categories: Creativity, Economy & Finance, Entrepreneurship, Regulations & Legal, Strategy

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