Is VAT payable on costsharing between a head office and its branch?

The Netherlands changes its policy from 1 January 2024.

On 5 July 2022, the Dutch Ministry of Finance announced an important change to the Decree on the Fixed Establishment (hereafter; ‘Decree’).
The Decree has been amended to bring it in line with the decisions of the European Court of Justice (CJEU) in the cases Skandia (C-7/13) and Danske Bank (C-812/19). In those decisions, the CJEU held that services provided between a head office (HO) and a fixed establishment (FE) are VAT taxable if the HO or/and FE belong to a VAT group.
The amended Decree states that supplies between a FE and a HO remain outside the scope of VAT if none of them is part of the VAT group of one of the EU Member States (MSs).