EU Court of Justice says VAT Exemption Applies to Defined Contribution Pensions Schemes
The EU Court of Justice has recently ruled that defined contribution pension schemes can be classed as “special investment funds” and are therefore VAT exempt.
In the case of ATP Pension Service A/S (C-464/12), the EU Court of Justice ruled that under Article 13B(d)(6) of Sixth Council Directive, occupational pension schemes operating on the “defined contribution” principle qualify as “special investment funds” as the beneficiaries bear the risk of the investment. The outcome of this case could have implications on the VAT treatment of defined contribution occupational pension schemes in Ireland.
For full details of the case see the Curia website.