- Businesses within a fiscal unity for VAT are individually liable for the total VAT debt
- Bankruptcy of a subsidiary within the fiscal unity can have unwanted consequences
- Bankruptcy results in the subsidiary being excluded from the fiscal unity for VAT
- The holding may be held liable for VAT obligations of the subsidiary
- It may be wise to terminate the fiscal unity with a subsidiary to prevent financial consequences
- The existence of a fiscal unity for VAT is determined by three cumulative conditions: financial, economic, and organizational interdependence.
Source: flynth.nl
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.
