Review of VAT rules for financial and insurance services

Oct 27, 2020

The European Commission is seeking feedback on a new initiative to review the VAT rules for financial and insurance services.

The Commission outlines that the current VAT rules are criticised for being complex, difficult to apply and for not having kept pace with the developments of new services in the sector. This seems to have led to a lack of VAT neutrality, legal uncertainty and high administrative and regulatory costs. The initiative focuses on addressing these issues through modernisation of the VAT treatment of financial and insurance services.

The feedback is due by 19 November 2020. For more information read the roadmap.