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published 28 Mar 2019 [Answer Published]","attribution":{"prepared_by":"ESMA","published_by":"ESMA","published_in":"ESMA Q&A tool","document_type":"qa_answer","legal_nature":"not_legislation","addressees":"not stated in the document","dates":{"published_on":"2019-03-28","question_submitted_on":"2019-03-28","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_1838, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_1838, column 'Date of submission'"}},"adoption":null}},"provenance":{"official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1838","check":{"result":"matched","checked_at":"2026-10-26","against":"the ESMA publication"},"repo_path":"spaces/mifid-ii/level-3/q-and-a/esma/esma-qa-1838-information-on-cost-and-charges.md","body_sha256":"531204d4c44d3df30c6283e7c4a004a3784aa23dd9d24aa6019f30ff6ed7de8e"},"units":[],"markdown":"---\ntitle: \"ESMA Q&A 1838 — Q&A — Information on cost and charges [Answer Published]\"\nshortTitle: \"ESMA Q&A 1838 — Q&A — Information on cost and charges [Answer Published]\"\nanswer_id: ESMA_QA_1838\ntopic: \"Information to clients on costs and charges\"\nstatus: \"Answer Published\"\ntype: qa\ninstrument_type: qa\nauthority: ESMA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"MiFID II\"\nmifid_level3: true\nmica_level2: false\nlegal_basis: \"MiFID II\"\ndate: 28 March 2019\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/1838\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 28 March 2019\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/1838\"\ncheck_status: matched\nverified: true\nlast_checked: 2026-10-26\nchecked_against: \"the ESMA publication\"\nsource:\n  prepared_by: \"ESMA\"\n  published_by: \"ESMA\"\n  published_in: \"ESMA Q&A tool\"\n  evidence:\n    prepared_by: \"ESMA Answer\"\n    locator: \"ESMA Q&A entry ESMA_QA_1838: field 'ESMA Answer', no 'Answer provided by' line\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2019-03-28\"\n  question_submitted_on: \"2019-03-28\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_1838, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_1838, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 28 Mar 2019 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 28 March 2019 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1838)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 1838 — Q&A — Information on cost and charges \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_1838 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 28 March 2019; question submitted 28 March 2019 |\n| **Legal basis** | MiFID II |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the ESMA publication |\n\n**Information on cost and charges**\n\n### Question\n\nWhich taxes should be included in the ex-ante and ex-post costs and charges disclosure?\n\n***\n\n### Answer\n\n\\[ESMA 35-43-349 MiFID II Q&As on Investor protection Ch. 9, question 26 \\]\n\nAccording to MiFID II, investment firms must disclose ex-ante and ex-post to their clients i) all costs and associated charges charged by the investment firm for the investment service(s) and/or ancillary service(s) provided to the client as well as ii) all costs and charges associated with the manufacturing and managing of the financial instruments. Such costs are listed in Annex II of the MiFID II Delegated Regulation. Amongst the examples of costs and charges included in Annex II are stamp duty and transactions tax (relating to both service costs and financial instruments costs).\n\nESMA is of the view that – regarding service(s) costs – a distinction should be made between transactional or service-based taxes related to the provision of an investment or ancillary service (such as stamp duty, transaction taxes or VAT, where applicable), and taxes related to the income/revenue generated by the investment in which the client has invested (such as income or capital gains taxes on the coupons of bonds/dividends of shares).\n\nTaxes related to the provision of an investment or ancillary service should always be included in the costs and charges disclosure.\n\nFirms could decide whether to include or not in their costs and charges disclosure taxes that relate to the income/revenue generated by the investment in which the client has invested.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1838)\n"}