Misuse of common registration not retroactively revoked due to abuse – Judgment by Supreme Court

• Case regarding establishment of wholly owned subsidiary by insurance company
• Issue of whether subsequent joint registration for VAT purposes constituted abuse under EU law
• Supreme Court found that construction by companies led to unjustified advantages contrary to purpose of VAT system
• Transactions redefined from VAT-free internal transactions to taxable transactions between separate taxable companies
• Companies could no longer rely on benefits of joint registration due to abuse of VAT rules
• Tax Ministry acknowledged companies could be jointly registered again after leasing IT system to insurance company with VAT for five years
• Companies could rely on joint registration without new application from that point without further application

Source: info.skat.dk

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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