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ECJ case C-812/19 (Danske Bank) – Questions – Cross border VAT group (reverse Skandia situation)

The European Court of Justice received preliminary questions in case C-812/19 (Danske Bank).

Unofficial translation/summary:

  • Danske Bank has its headquarters in Denmark and operates its activities in Sweden through a branch.
  • Danske Bank is part of a Danish VAT group.
  • The branch is not part of the Swedish VAT group.
  • The bank use of an IT platform for its activities in the Nordic countries.
  • HQ charges a fee to the branch for the Swedish use of that platform.
  • The branch raised a request to the fiscal committee to ascertain whether the fact that the bank is a member of a Danish VAT group, implies that the VAT group should be considered as a distinct taxpayer, from the Swedish branch’s perspective (i.e. a reverse Skandia situation).
  • The branch also wanted to know if the services provided by the Danish VAT group, the costs of which imputed to the branch, were subject to VAT, if the VAT should be reverse charge to the Swedish branch, and if the taxable base equals the allocated costs.
  • Danske appealed against the decision of the fiscal committee.
  • The question raised to the ECJ: Is a Swedish branch of a bank whose HQ is in another Member State to be treated as a distinct taxpayer, if the HQ is part of a VAT group of which the Swedish branch is not a part, and the HQ performs services for the branch and allocates the costs thereof to the branch?

See also the item of EY about this case here

Source Curia

Source: (Dutch/not published yet)