Companies within a VAT group are each individually liable for the total VAT debt. Usually this is not experienced as a problem. But in the current corona crisis, this can have unwanted consequences. For example, if there is a bankruptcy of an operating company belonging to the fiscal unity. The usual liability of your holding company for the VAT on the turnover of the operating company is then extended to include the VAT in unpaid invoices from your suppliers of the operating company. It may be wise to consider whether you can terminate the VAT fiscal unity between your holding company and the operating company.
Source: flynth.nl
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