This article analyses
the latest ruling of the Court of Justice of the European Union (CJEU)
regarding the qualification of a pension fund as a ‘special investment fund’
under Article 135(1)(g) of the VAT Directive. The authors discuss how the
requirement of bearing the investment risk should be interpreted in the light
of this judgment and – based on a simplified model calculation – how
‘significant impact’ of the investment results on the pension benefits can be
demonstrated. Moreover, the article discusses the comparability of Individual and
Collective Defined Contribution (DC) schemes and their VAT treatment in the
light of fiscal neutrality.