Requirement for a proposed amendment for the avoidance of opposing VAT determinations in the case of tax groups

BFH, ruling of 16 March 2023, V R 14/21 (V R 45/19)

Following the CJEU ruling of 15 April 2021 – case C 868/191 ̶  Finanzamt für Körperschaften Berlin ̶ the BFH has ruled that a commercial partnership with a “capitalist structure” can be a subordinate company, if besides the controlling enterprise, shareholders in the commercial partnership are also persons or entities who are not financially integrated in the controlling enterprise’s company. To this extent, the BFH is abandoning its case law to the contrary.

Source KPMG

See also C-868/19 (M-GmbH) – Decision – Members of a partnership and the head entity can form a VAT group