Pension Funds – EU VAT Aspects

The VAT position of pension funds varies from Member State to Member State. Differences not only concern the VAT treatment of the management of the funds, but also the extent to which pension funds or the sponsoring employers are able to recover VAT on costs associated with the operation of the funds. In this article, the authors discuss some of the differences in the VAT treatment of pension funds between the Member States of the European Union and explore the likelihood of harmonization in the near future.