In institutional fund management business, fund managers often receive their management fees directly from the investors in the fund (e.g. Swiss pension funds) rather than from the fund itself. Previously, the payment of these fees triggered Swiss VAT (currently 7.7%), albeit incorrectly.
So, 52 percent of the British have voted to leave the EU yesterday, sending shockwaves around the world. What now? This article provides a snapshot of what could be the future from an indirect tax perspective.
The Executive Body of the European Union is committed to deliver on its 1993 promise of a single VAT area. In addition the Commission wants to close the VAT gap - the difference between tax due and tax collected. Lastly, a "modernized rates policy" shall reflect recent trends of digitization and tackle unfair tax rate competition.