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Netherlands: VAT cost-sharing exemption continues for financial services sector

Netherlands: VAT cost-sharing exemption

The Dutch Ministry of Finance announced its intentions regarding continuing value added tax (VAT) cost-sharing exemption for financial institutions and insurers because of its potential implications.


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The Dutch Ministry of Finance stated that it intends to work with other EU Member States to continue the VAT exemption at the EU level. It is understood that several EU Member States intend to continue to allow the financial services sector to apply the cost-sharing exemption—pursuant to Article 132(1)(f) of the EU VAT directive (Council Directive 2006/112/EC of November 28, 2006).


The Court of Justice of the European Union (CJEU) in September 2017 issued judgments holding that the VAT exemption for cost-sharing groups does not apply to the financial and insurance sector. Read TaxNewsFlash-Europe

Subsequently, the Deputy Minister of Finance announced (March 2018) that the Dutch cost-sharing exemption would be restricted as of 1 January 2019—that is, the VAT exemption would no longer apply for financial institutions and insurers. 

However, two months later, the Dutch Ministry of Finance announced that the Dutch cost-sharing exemption—that would exclude financial institutions and insurers as from 1 January 2019—would continue to apply in the financial services sector. 

Accordingly, until further notice, the Dutch cost-sharing exemption can continue to apply in the financial services sector (provided that all conditions are met).


Read an October 2018 report prepared by the KPMG member firm in the Netherlands

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