EUROPE: European Commission launches consultation on reform of VAT for financial services

Tuesday March 14 2006

The European Commission has launched a consultation process on the reform of Community legislation for VAT on financial services. Comments must be provided by 9th June 2006. Whilst the Commission makes the point they are not committed to any legislative action in this regard, it should be of interest that the Commission does identify that amongst the current `problem areas` is the issue of outsourcing, including of depositary activities, which is central to the recent Abbey VAT case, which is also referrred to.

The consulation documents can be found by clicking on the above hyperlink.