On March 23, 2006, the ECJ provided his decision in the case C-210/04 related to Fixed establishment – Non-resident company – Legal relationship – Cost-sharing agreement – OECD Convention on double taxation – Meaning of ‘taxable person’ – Supply of services effected for consideration – Administrative practice
Article in the EU VAT Directive
Articles 2(1) and 9(1) of the Sixth Directive
Equivalent articles in 2006/112/EU: Article 2(1)(a) and (c) and Article 43
1. The following transactions shall be subject to VAT:
(a) the supply of goods for consideration within the territory of a Member State by a taxable person acting as such;
(c) the supply of services for consideration within the territory of a Member State by a taxable person acting as such;
- This case deals with the question whether, and if so, under which conditions services supplied within one and the same legal entity must be treated as taxable supplies for consideration subject to VAT under the Sixth VAT Directive.
- FCE bank performs VAT exempt financial services. It charges its branches for its services regarding management, advice, training of personnel, data processing development and supply of software, dividing the costs between the branches. FCE IT, the Italian branch of FCE Bank, has applied the reverse charge with regard to the charge made by FCE Bank. After it paid in the VAT it subsequently claimed back the VAT arguing that it lacks separate legal personality.