Finnish Court Ruling: VAT Treatment for Group Company Services Clarified

• Finnish Supreme Administrative Court clarifies VAT treatment for services provided by group companies
• Taxpayer company provided financial services to certain group companies
• Other companies offered VAT-exempt social and health care services
• Taxpayer sought to register a tax liability group
• Tax agency denied request due to requirements for qualifying as a trader primarily selling financial services
• Supreme Administrative Court clarified that taxpayer was not qualified as a trader primarily selling financial services
• Taxpayer and its applicant group companies did not have the right to form a tax liability group under Section 13a of the VAT Act
• Transactions within the group fell outside the scope of VAT and were not considered sales for VAT purposes.

Source: news.bloombergtax.com

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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