Building on our reply to the consultation on the review of VAT rules for FS, EFAMA took the opportunity to re-engage with TAXUD to share a short statement on EC's Consultation on VAT in the digital age. The aim was to highlight the relevance for our industry of specific problems concerning the VAT treatment of services supplied via platforms within the Financial Services sector.
The current VAT rules are not fit to cover emerging trends (such as digitalisation), the industry’s players (e.g. asset managers, distributors, administrative agents) and service providers in the investments chain value continue dealing with these trends, but ultimately end-investors, deserve better protection and we are re-calling for clear definitions for VAT purposes (e.g. outsourcing, management, automation and other trends arising from the rendering of financial services with the use of digital platforms).