Hannes Snellman Counsel to a Client in a Case Regarding VAT Exempt Management Services

Hannes Snellman assisted the client in an advance ruling process to confirm that certain services acquired regarding the target investment were considered VAT exempt management services of special investment funds and that the client did not have to pay VAT under the reverse charge mechanism. The matter was important to the client, as in practice it may vary what kind of services are needed to be acquired when acting as a lead investor or co-investor joining an investment at a later stage. The services in question formed a sufficient bundle of services qualifying for the criteria of VAT exempt financial services necessary for the client to be able to make the investment decision and similar investments in a more efficient way in the future as well. The Finnish tax authorities’ first opinion was that the services were VATable, but Hannes Snellman’s VAT team was able to change the outcome during the advance ruling process. The ruling is now final.

Our core team comprised Piia Ahonen and Marika Sorsa.