VAT for investment funds

Participants should ideally have some basic VAT knowledge.

A good understanding of VAT rules is a must in any business, but this is even more crucial when it comes to investment funds where VAT is generally a cost.

Certain services cannot benefit from the specific VAT exemption applicable to the management of special investment funds. There are different interpretations of the scope of the exemption across different EU member states and there is a growing volume of EU jurisprudence on the subject. Suppliers providing exempt services (management companies, administrative agents, etc.) have to work out how to recover VAT on their purchases.

The introduction of new VAT measures since 1 January 2017 (increase of VAT penalties, introduction of the VAT liability of the directors and de jure or de facto managers of taxable persons) underlines the importance of being fully compliant at all times with the Luxembourg VAT legislation. In particular, it is important that all VAT taxable persons, including investments funds and their suppliers, have sufficient understanding of the VAT treatment applicable to their output and input transactions.

PwC's Academy is happy to offer participants an innovative training session which gets them up to speed on the main VAT issues for investment funds such as FCPs, SICAVs, SIFs, SICARs, AIFs, securitisation vehicles and their management companies.

By the end of this training, participants will be able to:

• describe the main VAT rules applicable to investment funds in Luxembourg;
• apply the proper VAT treatment to a given transaction and report it correctly in the corresponding VAT returns;
• identify VAT exposures and opportunities to mitigate the final VAT cost when possible;
• identify recent and future developments both at local and international levels and the consequences for their business.

Theoretical part:

• Basic VAT rules explained through the "5-question method"
• VAT recovery methodology
• Luxembourg VAT compliance obligations
• Luxembourg updates and CJEU case law

Practical part:

A case study on the application of the rules, illustrating the main issues, risk areas and opportunities. The case study will consist in analysing the VAT treatment of several transactions and reporting these transactions into a VAT return.

An attendance certificate will be sent to participants.

This training is coordinated by Marie-Isabelle Richardin, Tax Partner in the PwC VAT department.

Marie-Isabelle Richardin, Partner, has been with PwC’s VAT practice since 2000. Her role at PwC is to assist operators in the financial services industry with their indirect-taxation strategies to help them comply with indirect-tax obligations. She has also gained experience in the international tax world by working 2 years in New York.

Marie-Isabelle is a regular speaker at conferences and training sessions on VAT for financial services. She is PwC Luxembourg’s representative in the VAT working groups such as the Luxembourg Investment Funds Association (ALFI), the European Fund and Asset Management Association (EFAMA) and she is chairwoman of the VAT group at LPEA.