In October 2013 the Dutch Supreme Court decided that third party management of mortgages is taxable with VAT. The Dutch Supreme Court ruled that credit management can consist of a number of activities, such as arranging for the initial payment of the mortgage to the borrowers, credit administration, calculation of monthly payment due by the borrowers, arranging for payments and the collection of the loan principal, interest, and arrears and the provision of periodical balance statements regarding the loans to both the borrowers and credit providers. These activities constitute one single supply for VAT purposes, which qualifies as credit management. The management of credit is only VAT exempt when performed by the person granting the credit. If a third party provides these services, the services are taxable. As a consequence of this judgment, third party managers have to reconsider the VAT treatment of their services. This judgment is also of importance to credit providers who outsource the management of credit to a third party, as they will be faced with non-deductible VAT on the outsourced services.