The recent ECJ judgments in AXA and T-Mobile have put the spotlight on the scope of the VAT exemption for payment services, and, as with many of the exemptions for financial services, fundamental questions still remain about which services fall in or outside of these exemptions. The judgments, which have both been decided by ignoring the majority of the important questions referred, appear to apply a narrower scope of the exemption for payment services, without necessarily providing much needed guidance on the tests to be applied when examining whether the exemption applies. This can only lead to continued uncertainty for those involved in the provision, or receipt of, payment and collection services.
