CCLA: AIFs can qualify for the SIF VAT exemption

The interpretation of the VAT exemption for the management of special investment funds (the ‘SIF exemption’) under Article 135(1)(g) of the Principal VAT Directive (2006/112/EC) (the ‘PVD’) has evolved through CJEU case law developments over several decades with UK law being amended as necessary to follow suit. A phrase ripe for clarification was the meaning of ‘specific State supervision’ of a fund referenced in Fiscale Eenheid (Case C-595/13) being one of the criteria for the SIF exemption to apply. The FTT in the CCLA case has now considered this issue and confirmed that Alternative Investment Funds (‘AIFs’) under the Alternative Investment Fund Managers Directive (‘AIFMD’) can constitute SIFs – but whether they do or not will depend upon whether the other criteria for a SIF are met. In...