Financial Services Ireland

New VAT exemption to DC pension funds

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New VAT exemption to DC pension funds

The ECJ delivered its judgment on 13 March 2014 on the question of whether the management of a defined contribution pension scheme qualifies for the VAT exemption for management of special investment funds. The Court has found that exemption should apply to the management of such funds. You can access a copy of our alert on the judgment and its implications here or through the link below.

Providers of management services to defined contribution pension schemes who have not already submitted claims to Revenue for any overpaid VAT for the last four years should consider doing so without delay. Employers with defined contribution pension schemes and/or pension funds and trustees with such schemes may wish to contact their providers to request a repayment of VAT overpaid in the past and VAT exempt treatment going forward. There may also be circumstances where employers/funds can make claims directly against Revenue for part or all of the VAT incurred, for example where the fund has self-accounted for VAT on a management service received from abroad.

If you feel that this judgment could have implications for your business, and you would like to discuss the position in more detail, please speak with myself or your usual EY indirect tax contact or one of the contacts listed in the alert.