Skip to main content

Legal Update

Value added tax and acquisition of non-performing loans

4 November 2011
Mayer Brown Legal Update
In its MKG decision dated 26 June 2003 (C-305/01) the European Court of Justice (“ECJ”) ruled that each kind of factoring – i.e. non-recourse and recourse factoring – qualifies as a service subject to value added tax (“VAT”). The Federal Ministry of Finance (“FMF”) interpreted this MKG-decision in a way that each purchase of receivables qualifies as VAT-able factoring provided that the purchaser assumes the collection of the purchased receivables.
The Build a Report feature requires the use of cookies to function properly. Cookies are small text files that are placed on your computer by websites that you visit. They are widely used in order to make websites work, or work more efficiently. If you do not accept cookies, this function will not work. For more information please see our Privacy Policy

You have no pages selected. Please select pages to email then resubmit.