The supplies falling under the first of the categories of ‘Financial investments’ in ¶41-050 will mainly involve loans and long-term advances and securities. For the most part, these will be basically exempt from VAT, regardless of the capacity in which they are made. However, the ultimate VAT position can depend on what precisely any given transaction amounts to and on the circumstances of the parties concerned.

(1) Exemption

The exemption provisions of most concern follow from art. 135(1)(l) of Directive 2006/112 (art. 13(B)(d) of the former sixth VAT directive (Directive 77/388)). In particular art. 135(1)(b), (d), (f) and (g) (art. 13(B)(d)(1), (3), (5) and (6)) applies to:

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