VAT for investment funds (including alternative funds)
Investment fund structures can be complex to manage from a tax perspective. In particular, with regard to indirect taxation, it is of the utmost importance to ensure the proper VAT treatment of investment operations, as VAT may easily become an important cost for the structure.
Depending on the nature of the performed operations, structures investing in alternative and real estate assets may face restrictions on their input tax recovery. It is critical to ensure that all different investment stages (and the corresponding contractual arrangements) take into account the VAT consequences that may arise therefrom.
The ensuing complexities should be identified and understood by businesses to ensure that the VAT position and compliance obligations in Luxembourg are correctly handled.
PwC Academy is happy to offer you an innovative training session which gets you up to speed on the main VAT issues for investment funds such as SICAVs, SIFs, SICARs, AIFs, RAIFs, securitisation vehicles and their management companies and general partners.
Duration: 4h
Language: Available in English, French, and German. The supporting material is only available in English
Number of participants: up to 15
Available as intra-company course (i.e. dedicated session on demand)
Course content can be customised on demand under specific conditions.
Objectives
By the end of this training, participants will be able to:
- describe the main VAT rules applicable to investment funds in Luxembourg;
- determine the VAT profiles of the various entities involved in an investment structure;
- be aware of the VAT compliance obligations arising at each entity level in the investment structure (including platforms, intermediary holding companies and SPVs);
- understand the implications of VAT-exempt operations on the input VAT recovery;
- apply the proper VAT treatment to a given transaction and report it correctly in the corresponding VAT returns;
- understand the main VAT differences between share deals vs. asset deals;
- when real estate assets are involved, understand the VAT obligations and potential risks arising at:
- the purchase of the assets
- during the use of the assets
- the exit phase
- correctly determine the VAT treatment applicable to services acquired/supplied by the different entities in each phase of the investment;
- identify VAT exposures and opportunities to mitigate the final VAT costs when possible.
Content
- VAT position of investment funds in Luxembourg (VAT registration requirements, applicability of VAT exemptions)
- Overview of the VAT treatment applicable to the different flows of operations in the:
- Investment
- Holding
- Divestment phases of typical investment operations within the alternative and real estate sectors
- Effects of VAT-exempt operations on the recovery of input VAT
- Definition of the VAT profile of each player participating in investment operations (e.g., holding companies, corporations, funds, GP, investment managers, investment advisors, service providers)
- Considerations on the particular VAT treatment of operations involving real estate (e.g., asset deals vs share deals; leasing of real estate (with or without option to tax), specific place of supply of services rules applicable)
- Overview of the VAT compliance obligations arising in each of the players' spheres
- Points of attention: highlight of recent Luxembourg and CJEU legislative/case-law updates (namely covering recent K, DBKAG and Titanium ECJ's decisions)
Target audience
- Financial directors
- Accountants
- Employees dealing with VAT
- Internal auditors (invoicing, VAT accounting)
Participants should ideally have some basic VAT knowledge.
Our lead experts
This training is coordinated by Marie-Isabelle Richardin, Tax Partner in the PwC VAT department.
Marie-Isabelle Richardin is a partner at PwC with over two decades of experience in VAT practice, specialising in assisting financial services operators with indirect-taxation strategies to ensure compliance and reduce tax burdens at both Luxembourg and international levels. She has held leadership roles within PwC’s VAT practice and gained international experience through assignments in New York and London. Marie-Isabelle is a frequent speaker and trainer on VAT for financial services, a guest lecturer at the University of Luxembourg, and has chaired the VAT working group of the Luxembourg Private Equity Association. She also represents PwC Luxembourg in VAT groups of key industry associations including ALFI and EFAMA. Her expertise covers financial transactions, investment funds, asset management, and VAT compliance, with notable client projects involving private equity, real estate, hedge funds, management companies, and banks.
