We would like to remind businesses with branches in their organizational structure and presence in the Netherlands (either the head office or a branch) that they potentially need to report new transactions in their Dutch VAT returns as of 2024. This could lead to additional VAT costs or savings.
WHAT IS THE CURRENT POSITION IN THE NETHERLANDS?
Historically transactions between a head office and its branch were considered outside the scope of Dutch VAT when one of them was part of a Dutch VAT group.
WHAT WILL CHANGE AS OF 2024?
In 2021 the ECJ ruled in the Danske Bank case that territorial limits apply to VAT grouping. As such, a VAT group can only consist of parties established in the member state of the VAT group….
Source: alvarezandmarsal.com
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