9 December 2025
The General Court of the CJEU clarifies the scope of VAT exempt negotiation services
The question referred to the Court was whether a comprehensive mortgage intermediation service that proactively sources clients, provides product information, assists with documentation, transmits and tracks proposals, compares offers, advises on financing terms, communicates decisions, and operates on a success-based remuneration model, should be viewed as a VAT exempt negotiation service. The question was raised, in particular, considering that it was found that the intermediary had neither the power to act on behalf of the credit institutions nor had any influence on the terms of the credit offers (which had been fixed in advance). Customers remained free to choose whether or not to enter into an agreement with the credit institution or with which one if they had decided to do so.
The Court found that the exemption could not be excluded on the ground that the intermediary had no influence over the terms of the credit offer and reminded us that the fact that the terms of the credit agreement had been fixed in advance is not determinative since the activity of negotiation may be limited to pointing out to one party to the contract suitable opportunities for the conclusion of such a contract.
Key takeaway
The CJEU adopts a broad interpretation of “negotiation services”, allowing VAT exemption even where it seems that nothing remains to be negotiated. This approach, equating negotiation with mediation, could significantly affect other businesses. Businesses may want to seek advice, as services may unexpectedly qualify for VAT exemption, impacting VAT recovery.