- The Advocate General to the Dutch Supreme Court has concluded that the territorial restriction of the VAT group is a justifiable breach of the freedom of establishment and that the Dutch Supreme Court is not obliged to refer preliminary questions to the Court of Justice of the European Union.
- The case concerns a Dutch VAT group that receives intercompany charges for services from its German parent company and argues that the territorial limitation of the VAT group is a breach of the right of establishment.
- The AG agrees that the territorial restriction breaches the freedom of establishment, but concludes that it is a justifiable and proportional restriction to protect the consistency of the tax system and tax sovereignty of EU Member States.
- The AG rejects the argument that specific disadvantages should be mitigated for specific taxpayers and is of the opinion that the case should not be referred to the CJEU.
Source Deloitte
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