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
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