Denial of VAT refund if permanent establishment exists: only PE can claim credit.

• Presence of a stable organization in the territory inhibits refund request of excess VAT by the parent company
• Only the stable organization can request refund of any accrued credit
• Services provided by the branch to the parent company are irrelevant for tax purposes
• Clarifications provided in response to query number 87 by the Revenue Agency
• Case study involves a stable organization in Italy providing services to the parent company in the UK
• Services provided by the stable organization to the parent company were considered relevant for tax purposes until 2022
• Brexit did not make the provision of the VAT Group inapplicable for such subjects

Source: eutekne.info

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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