DFMs not exempt from VAT, says European Court

An Advocate General (AG), giving an opinion today on a case involving Deutsche Bank, said portfolio management should be liable for VAT - rejecting the German bank's argument that such services should be exempt. The AG concluded portfolio management services constitute a single supply chain for VAT purposes. However, the she said she understood the "logic" of Deutsche Bank which argued that, because management of joint funds and direct investment are not subject to VAT, portfolio management should also be exempt. The bank said a difference in VAT treatment could lead investors to c...