Final VAT Ruling on Fiscal Unity by BFH Affirms Non-Taxability of Internal Transactions

• The BFH has made a final decision on VAT group taxation after consulting the EuGH twice
• The BFH agrees with the EuGH and confirms that internal transactions within a VAT group are not subject to VAT
• This means services provided by a subsidiary to the parent company and vice versa are not taxable
• Additionally, a chargeable service from a subsidiary to the parent company for its sovereign activities does not result in a withdrawal under § 3 Abs. 9a Nr. 2 UStG

Source: datenbank.nwb.de

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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