VAT group : VAT on services provided by head-office to fixed establishment / branch

The CJEU confirmed the application of the reverse-Skandia principle: a branch is a separate VAT taxable person from its head-office when the head-office is a member of a VAT group in another EU Member State (CJEU, C-812/19, 11 March 2021).

This approach was already applied in Belgium. However, some EU Member States were not recognizing reverse-Skandia. Therefore, it is recommendable to check the implications as some transaction may become VAT taxable.

Source PwC

See also ECJ case C-812/19 (Danske Bank) – Judgment – Head Office part of VAT group & its Branch are separate taxable persons

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