Determining policy for VAT group goes beyond drawing up a budget

• A hospital and a private limited company set up a joint venture to provide cleaning and facility services to the hospital.
• They requested to be classified as a fiscal unity for turnover tax, but were later denied as they did not meet the required conditions of organizational interdependence.
• The court ruled that joint management is necessary for organizational interdependence, and the hospital’s annual budget did not prove such joint management.
• The company’s appeal was declared unfounded.

Source Taxence

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