The Swedish supreme administrative court on 30 October 2019 announced it is requesting a preliminary ruling from the Court of Justice of the European Union (CJEU) regarding the value added tax (VAT) treatment of supplies from an overseas head office to its branch in Sweden, in a situation when the overseas head office is a member of a VAT group but the Swedish branch is not a member of the VAT group.
The question to be asked to EUCJ is basically saying “should a Swedish branch (not member of a Swedish VAT group) be deemed a taxable person, when its overseas head office, being a member of a VAT group in another EU Member State, supplies services and allocates costs for these services to the branch”.
Source: KPMG
