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A financial institution has enquired whether VAT should be applied to securities management services when charging fees for dividend management. The Directorate-General for Taxes (DGT) has ruled that these management services are not exempt.
Question raised: Whether or not the financial institution must charge VAT on the securities management service.
Securities deposit and management services do not benefit from the exemption for financial operations due to their administrative nature. The management of dividend collection is included in these management services, and therefore VAT must be charged.
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