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V2457-20 17 July 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sociedad de inversión colectiva

Management services for closed-ended collective investment schemes are exempt from VAT

A management company has requested clarification on whether management services provided to a closed-ended collective investment scheme are exempt from VAT. The Directorate-General for Taxes (DGT) has ruled that the exemption applies regardless of whether the fund is open-ended or closed-ended.

The question raised

Whether the provision of such services is exempt from Value Added Tax.

The DGT's ruling

The management of closed-ended collective investment undertakings is included in the concept of mutual funds under the Directive. Therefore, management services provided by a management company and remunerated by variable and success fees are exempt from VAT. This exemption covers both portfolio management and the administration of collective investment undertakings.

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