• Service: Tax, Financial Services, Banking
  • Industry: Financial Services
  • Type: Newsletters
  • Date: 11/15/2013


Laurence Lhote

+352 22 51 51 5534


Konstanze Ziegler
+352 22 51 51 5466

Luxembourg Tax News - Issue 2013-19 

November 2013

VAT exemption of risk management services


Risk management services part of management of investment funds


On 7 November 2013, the Luxembourg VAT authorities published a Circular specifying the scope of VAT exemption applicable to the management of investment funds.


It has been confirmed that services of risk management are part of fund management services as stated in Article 44, 1, d) of the Luxembourg VAT Law (VATL). Therefore, the risk management services provided by the management company should, in principle, be VAT exempt. This should apply equally in the case of management of alternative investment funds.


The Circular also confirms that in the case of management services provided by a third party (outsourced services), these services should, viewed broadly, form a distinct whole, be specific to and essential for the management of funds in order to be VAT exempt. The exemption does not apply to purely material or technical services. Furthermore, a single isolated type of service ("un seul type isolé de services") supplied by a third party cannot benefit from the VAT exemption under article 44, 1, d) VATL.


For further information, please do not hesitate to contact us.






The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


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