European Court Rules In Favour Of ING In VAT Case

by Ulrika Lomas, Tax-News.com, Brussels

22 October 2004

The European Court of Justice yesterday ruled in favour of Dutch banking firm ING Groep by allowing its Luxembourg-based consulting subsidiary to continue paying no value added tax (VAT).

According to the ECJ’s ruling, Banque Bruxelles Lambert, owned by ING, is exempt from charges levied by the Belgian government totalling some EUR140 million because its consulting services are supplied in Luxembourg, which charged ING a zero rate of VAT.

“Where services of consultants and banking and financial transactions are performed for customers established in the Community but not in the same country as the supplier, the place where those services are provided is the place where the customer has established his business,” the ECJ commented in a statement.

BBL challenged the assessment of the Belgian tax authorities by arguing that its interpretation was contrary to the Sixth VAT Directive, and took its complaint initially to the Court of First Instance in Luxembourg, which then sought the advice of the ECJ.

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