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By Antonio MERINO — Counsel, VAT lead, Baker McKenzie Luxembourg
On 17 June 2026, the General Court of the European Union (“GCEU”) ruled that the management, for consideration, of credit by the original lender after that lender has sold the credit is not exempt from value added tax (“VAT”).
The decision in Veronsaajien oikeudenvalvontayksikkö(1) should be particularly relevant for a jurisdiction such as Luxembourg, where financial transactions are at the heart of the domestic economy and where a new bill(2) has recently been introduced to make the securitisation framework more attractive.
Luxembourg is indeed a leading hub for structuring international debt, fund financing and corporate credit...
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