Skandinaviska Enskilda Banken AB Momsgrupp v Skatteverket

In Skandinaviska Enskilda Banken AB Momsgrupp v Skatteverket (ECJ Case C-540/09) the tax authority issued a ruling that VAT was chargeable on certain underwriting guarantee services supplied by a bank. The bank appealed contending that they were exempt and the case was referred to the ECJ. Advocate-General Jääskinen delivered an Opinion in favour of the bank holding that the exemption under Article 13B(d)(5) of the EC Sixth Directive included ‘underwriting guarantee services which involve a credit institution providing for consideration a guarantee to a company about to issue shares where under that guarantee the credit institution undertakes to acquire any shares which are not subscribed within the period for share subscription’.

Why it matters: Article 13B(d)(5) of the Sixth Directive provides that certain transactions in shares and other securities qualify for exemption from VAT. Advocate-General Jääskinen has expressed the Opinion that the exemption...