Financial Interconnection Requirement Hinders VAT Fiscal Unity: Case Study and Practical Implications

• The dispute resolution clause in a shareholder agreement can prevent the formation of a fiscal unity for VAT
• A case involving a cleaning company and a hospital is discussed, where the lack of financial interdependence led to the denial of a fiscal unity for VAT
• The court ruled that majority ownership is not enough for financial interdependence, and actual decision-making power is required
• Provisions in company statutes or shareholder agreements can impact the qualification for a fiscal unity for VAT

Source: vanoers.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.

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