The management of collective investment funds is VAT-exempt in the EU as laid down in the EU VAT Directive. In the case “Fiscale Eenheid X“ (C-595/13), the Dutch Supreme Court has referred to the CJEU whether such exemption also applies to the management of real estate funds. According to Advocate General Kokott, property management services for real estate funds fall within the scope of the VAT exemption. Should the CJEU adopt this opinion, this would have an impact on the VAT treatment of asset management and property management services for real estate funds in the EU.

The German Federal Financial Supervisory Authority (Bundesanstalt für Finanz­dienst­leistungs­auf­sicht, or “BaFin”) has announced a change in its administrative practice with regard to debt funds. Until now, German debt funds were only allowed to grant loans in very limited circumstances. With this change in administrative practice, German debt funds are no longer subject to these limitations and are now free to originate loans directly in Germany. This also means that foreign (non-German) debt funds are also allowed to issue loans in Germany.

The Federal Ministry of Finance has published guidance on what is entrepreneurial activity under the German Investment Tax Act. The guidance, dated 3rd March, explains what activity an investment fund needs to refrain from to keep its status.