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A venture capital fund management company has requested clarification on whether investment advisory services contracted from a third party are exempt from VAT. The Directorate General for Taxes (DGT) has ruled that they are, provided that the delegation does not turn the management company into a shell entity and the advisory services remain essential to the management process.
This ruling provides legal certainty for venture capital firms regarding the VAT treatment of outsourced advisory services, provided they maintain substantive management control.
The tax team reviews your specific situation.
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