European Court of Justice Issues Advocate General Opinion on VAT Rules for Credit Management Services

The European Court of Justice (ECJ) Feb. 25 issued an Advocate General opinion for Case No. T-184/25, on VAT rules for credit management services following the securitization and sale of housing loans. The taxpayer, a Finnish banking group, originated housing loans and sold them to a subsidiary that issued bonds secured by those loans, while the original lender continued managing the loans for consideration. The Finnish tax authority treated the management services as exempt from VAT. Upon request for a preliminary ruling, the Advocate General opined that Council Directive 2006/112/EC must be interpreted as meaning that the management of credit ...