In a decree published on 1 July 2022, the Dutch State Secretary for Finance announced changes to the policy on cross-border VAT groups and, in particular, the concept of a “fixed establishment” for VAT purposes. The decree takes into account jurisprudence of the Court of Justice of the European Union (CJEU) in the Skandia and Danske Bank cases and amends the VAT decree issued on 18 December 2020 (for prior coverage, see the article in the January 2021 issue of Indirect Tax News). Based on the new decree, as from 1 January 2024, it will no longer be possible to include foreign establishments in a Dutch VAT group, which will have significant consequences (particularly for the financial sector) for the VAT treatment of supplies between entities that are part of a Dutch group and that have foreign establishments.
Source BDO
