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A private banking entity inquired whether one-off investment advice could be classified as financial mediation exempt from VAT. The DGT ruled that this service does not constitute mediation, but rather advice on product suitability, and must therefore be taxed at the standard rate.
Financial institutions and investment advisors must apply the standard VAT rate to one-off advisory services, as they cannot be categorised as exempt financial mediation.
The tax team reviews your specific situation.
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