Dutch: “Hoge Raad licht economische verwevenheid toe”
Summary:
In two judgments, the Dutch Supreme Court gave a further explanation of the concept of “economic interdependence”, which is necessary for businesses to form a VAT group (together with the Financial and Organisational link).
In the first case, the Supreme Court rules that economic interdependence exists if one entrepreneur carries out his activities for at least 70% on behalf of the other entrepreneur. In the second case, the Supreme Court judges that economic interdependence can also occur if there are non-negligible economic relations between the two entrepreneurs. Delivering goods to third parties to a greater or lesser extent does not exclude such relationships.
Source: Taxence (Dutch)
Case law:
Hoge Raad 5 juli 2019, ECLI:NL:HR:2019:1112
Hoge Raad 5 juli 2019, ECLI:NL:HR:2019:1118
