On March 11, 2021, the Court of Justice of the European Union (hereinafter: CJEU) decided in the Danske Bank case (C-812/19) that services provided by a Danish head office to its fixed establishment in Sweden are subject to VAT as the Danish head office was part of a VAT group in Denmark. The case is comparable to the 2014 CJEU judgment in Skandia America Corporation (hereinafter: Skandia). In certain situations, the impact of the Danske Bank judgement can be significant for the VAT treatment of intercompany services. This applies in particular when the receiving entity concerned does not have a (full) right to recover input VAT. In this news flash we will briefly elaborate on the facts and the potential impact in practice.
Source: RSM
Latest Posts in "European Union"
- EU Must Intensify Efforts Against Tax Fraud and Corruption, Says Chief Prosecutor
- Complex Interplay: Transfer Pricing and VAT Challenges for Multinational Corporations in the EU
- Complex Interplay: Transfer Pricing and VAT Challenges for Multinational Corporations in the EU
- German E-Commerce Group Achieves Multi-Country VAT Compliance Post-OSS Suspension with hellotax Support
- Virtual Currency Taxation: Analyzing VAT Implications in Gaming Post Case C-472/24
