Guidance Signal Excludes Certain Alternative Investment Funds From VAT Exemption on Management Fees
Published 8 March 2019
Category: Taxation / VAT
On 8 March 2019, the Danish Tax Agency published a draft guidance signal for public hearing. If implemented, the guidance signal will dictate that the Danish VAT Act’s special rules on VAT exemption on management fees for management of investment undertakings (the “VAT Exemption Rule”) will only apply to investment undertakings covered by the UCITS directive or investment undertakings considered to be “similar” to these.
According to the draft guidance signal, several conditions must be fulfilled in order for an alternative investment fund (“AIF”) to be considered similar to investment undertakings covered by the UCITS directive, including that the AIF must be subject to special governmental supervision. While AIFs that are managed by managers authorised under section 6 of the Danish AIFM Act are subject to special governmental supervision, AIFs that are managed by managers registered under section 9 of the Danish AIFM Act will according to the draft guidance signal not fulfil this requirement and accordingly not quality for exemption pursuant to the VAT Exemption Rule.
Next steps: Public hearing ended on 3 May 2019 and the Danish Tax Agency is currently reviewing the feedback received.
See the draft control signal (in Danish) here.