Majority of voting rights as a requirement for the financial interconnectedness requirement is against EU law.
On December 1, 2022, the Court of Justice of the EU (“ECJ”) delivered two judgments regarding the application of the VAT group in Germany (C-141/20 and C-269/20).
In this alert we take a closer look at case C-141/20 (Norddeutsche Gesellschaft für Diakonie) (“NGD”) and we briefly consider case C-269/20 (Finanzamt T). It follows that a Member State may not require that a majority of voting rights (control) be held in another company in order to form a fiscal unity for VAT purposes. In addition, the CJEU discusses the independence for VAT purposes of the parts of the fiscal unity.
Source Deloitte
See also
- ECJ C-141/20 (Norddeutsche Gesellschaft für Diakonie mbH) – Judgment – VAT group: Controlling member may be the only representative of a VAT group
- C-269/20 (Finanzamt T) – Judgment – Controlling company may be the only taxable person of a VAT group
Join the Linkedin Group on ECJ VAT Cases, click HERE
Latest Posts in "European Union"
- VAT and Transfer Pricing: CJEU’s Arcomet Decision Clarifies Intra-Group Service Remuneration and VAT.
- VAT on Transfer Pricing Adjustments: Importance of Detailed Documentation in Court Rulings
- E-Invoicing in the EU: Tax Authorities’ Data Use and Its Impact on Businesses
- Are Pre-Filled VAT Returns Truly Beneficial for Businesses Navigating Complex Tax Regimes?
- EU VAT Expert Group Highlights E-Invoicing Standardisation Challenges and ViDA’s Impact on Businesses
