In the case at hand the European Court of Justice confirmed the position of the Luxembourg VAT authorities with regard to outsourced advisory services for the management of special investment funds.
On March 7, 2013 the Court decided that investment advisory services, provided by a third party to a manager of a special investment fund fall within the concept of “management of special investment funds” for the purpose of the VAT exemption.
Hence, not only investment advisory services supplied by the manager to fund may benefit from the VAT exemption, but also those which are sub-contracted to a third party advisor by the manager.
If you should have any further question in relation with VAT and the investment fund business do not hesitate to contact us.