VAT exemption for pension management services where direct and immediate link (PPG Holdings BV v Inspecteur van de Belastingdienst)

Table of contents

• Original news
• What were the facts?
• What legal principles applied?
• What was decided?
• What are the practical implications of this case?

Article summary

In PPG Holdings BV (Fiscale eenheid) v Inspecteur van de Belastingdienst / Noord / kantoor Groningen (Case C-26/12), the European Court of Justice held that a taxable person who has set up a pension fund in the form of a legally and fiscally separate entity, is entitled to deduct the Value Added Tax he has paid on services relating to the management and operation of that fund where there is a direct and immediate link.